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(CW/743^/.Aa/<Jt.' 



The 



MAR IS 1^90 
lAW LIBRARY 



NORTH CAROLINA 

REGISTER 



IN THIS ISSUE 



EXECUTIVE ORDER 



COHs 

TSiriUl |l(/3l 



PROPOSED RULES 

Economic and Community 
Development 

Education 

Environment, Health, and 
Natural Resources 

Human Resources 

Insurance 

Labor 

FINAL RULES 
Correction 

ISSUE DATE: MARCH 1 5, 1 990 

Volume 4 • Issue 24 • Pages 11 63- 1225 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published bi-monthly 
and contains information relating to agency, executive, 
legislative and judicial actions required by or affecting 
Chapter 150B of the General Statutes. All proposed, ad- 
ministrative rules and amendments filed under Chapter 
150B must be published in the Register. The Register 
will typically comprise approximately fifty pages per 
issue of legal text. 

State law requires that a copy of each issue be pro- 
vided free of charge to each county in the state and to 
various state officials and institutions. The North Carolina 
Register is available by yearly subscription at a cost of 
one hundred and five dollars ($105.00) for 24 issues. 

Requests for subscriptions to the North Carolina 
Register should be directed to the Office of Ad- 
ministrative Hearings, P. O. Drawer 1 1666, Raleigh, N. 
C. 27604, Attn: Subscriptions. 

ADOPTION, AMENDMENT, AND REPEAL OF 
RULES 

An agency intending to adopt, amend, or repeal a rule 
must first publish notice of the proposed action in the 
North Carolina Register. The notice must include the 
time and place of the public hearing; a statement of how 
public comments may be submitted to the agency either 
at the hearing or otherwise; the text of the proposed 
rule or amendment; a reference to the Statutory 
Authority for the action and the proposed effective date. 

The Director of the Office of Administrative Hearings 
has authority to publish a summary, rather than the 
full text, of any amendment which is considered to be 
too lengthy. In such case, the full text of the rule con- 
taining the proposed amendment will be available for 
public inspection at the Rules Division of the Office of 
Administrative Hearings and at the office of the pro- 
mulgating agency. 

Unless a specific statute provides otherwise, at least 
30 days must elapse following publication of the pro- 
posal in the North Carolina Register before the agency 
may conduct the required public hearing and take ac- 
tion on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency 
must file any adopted or amended rule for approval by 
the Administrative Rules Review Commission. Upon ap- 
proval of ARRC, the adopted or amended rule must be 
filed with the Office of Administrative Hearings. If it 
differs substantially from the proposed form published 
as part of the public notice, upon request by the agen- 
cy, the adopted version will again be published in the 
North Carolina Register. 

A rule, or amended rule cannot become effective 
earlier than the first day of the second calendar month 
after the adoption is filed with the Office of Ad- 
ministrative Hearings for publication in the NCAC. 

Proposed action on rules may be withdrawn by the 
promulgating agency at any time before final action is 
taken by the agency. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, 
some agencies may issue temporary rules. A temporary 
rule becomes effective when adopted and remains in 



effect for the period specified in the rule or 180 days, 
whichever is less. An agency adopting a temporary rule M 
must begin normal rule-making procedures on the per- «| 
manent rule at the same time the temporary rule is 
adopted. 

NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrative Code (NCAC) is 
a compilation and index of the administrative rules of 
25 state agencies and 38 occupational licensing boards. 
The NCAC comprises approximately 15,000 letter size, 
single spaced pages of material of which approximate- 
ly 35% is changed annually. Compilation and publica- 
tion of the NCAC is mandated by G.S. 150B-63(b). 

The Code is divided into Titles and Chapters. Each 
state agency is assigned a separate title which is fur- 
ther broken down by chapters. Title 21 is designated 
for occupational licensing boards. 

The NCAC is available in two formats. 

(1) Single pages may be obtained at a minimum 
cost of two dollars and 50 cents ($2.50) for 10 
pages or less, plus fifteen cents ($0.15) per each 
additional page. 

(2) The full publication consists of 52 volumes, 
totaling in excess of 15,000 pages. It is sup- 
plemented monthly with replacement pages. A 
one year subscription to the full publication in- 
cluding supplements can be purchased for 
seven hundred and fifty dollars ($750.00). In- i 
dividual volumes may also be purchased with n 
supplement service. Renewal subscriptions for V 
supplements to the initial publication available. 

Requests for pages of rules or volumes of the NCAC 
should be directed to the Office of Administrative 
Hearings. , 

NOTE ' 

The foregoing is a generalized statement of the pro- 
cedures to be followed. For specific statutory language, 
it is suggested that Articles 2 and 5 of Chapter 150B of 
the General Statutes be examined carefully. 

CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carolina Register is cited by volume, issue, 
page number and date. 1:1 NCR 101-201, April 1, 1986 

refers to Volume 1, Issue 1, pages 101 through 201 of 
the North Carolina Register issued on April 1, 1986. 



North Carolina Register. Published bi-monthly by 
the Office of Administrative Hearings, P.O. Drawer 
11666, Raleigh, North Carolina 27604, pursuant to 
Chapter 150B of the General Statutes. Subscriptions 
one hundred and five dollars ($105.00) per year. 
North Carolina Administrative Code. Published 
in looseleaf notebooks with supplement service by 
the Office of Administrative Hearings, P.O. 
Drawer 1 1666, Raleigh, North Carolina 27604, pur- 
suant to Chapter 150B of the General Satutes. 
Subscriptions seven hundred and fifty dollars 
($750.00). Individual volumes available. 



f 



NORTH 
CAROLINA 
REGISTER 



ISSUE CONTENTS 




Office of Adminhtrativc Hearings 
P. O. Drawer 11666 
Ralei<;fi, \C 276114 

(919) 733 - 267H 



Julian Mann III, 

Director 
James R. Scarcclla Sr., 

Deputy Director 
Molly \Iasich, 

Director A PA Services 



Staff: 

Ruby Creech, 

Publications Coordinator 
Teresa Kilpatrick, 

Editorial A ssistant 
Jean Shirley, 

Editorial Assistant 



I. EXECUTIVE ORDER 

Executive Order 106... 



16.-^ 



II. PROI'OSED Rl LES 

Economic and Community 
Development 

Banking Commission 1 164 

Savings Institutions Division: 
Savings Institutions 

Commission 1171 

Education 
EIementar>' and Secondary 

Fducation 1218 

En\ironment, Healtii, and 
Natural Resources 
rn\ironmcntal Management.... 1217 
Human Resources 

AFDC 1198 

I'acilit) Senices 1 188 

Insurance 
Engineering and Building 

Codes 1199 

Labor 
Apprenticeship and 
Iraining Division 1216 

III. I INAE RIEES 

Correction 

Di\ision of Prisons 1220 

n . ClMl LATIVE INDEX 1222 



NORTH CAROLINA REGISTER 

Publication Schedule 

(January 1990'- December 1991) 



Issue 


Last Day 


Last Day 


Earliest 


+ 


Date 


for 


for 


Date for 


Earliest 




Filing 


Electronic 


Public 


Effective 






Filing 


Hearing & 
Adoption by 
Agency 


Date 


++++++++ 


++++++♦+ 


++++++♦* 


*+++++++ 


++++++++ 


01/02/90 


12/07/89 


12/14/89 


02/01/90 


05/01/90 


01/16/90 


12/20/89 


12/29/89 


02/15/90 


05/01/90 


02/01/90 


01/10/90 


01/18/90 


03/03/90 


06/01/90 


02/15/90 


01/25/90 


02/01/90 


03/17/90 


06/01/90 


03/01/90 


02/08/90 


02/15/90 


03/31/90 


07/01/90 


03/15/90 


02/22/90 


03/01/90 


04/14/90 


07/01/90 


04/02/90 


03/12/90 


03/19/90 


05/02/90 


08/01/90 


04/16/90 


03/23/90 


03/30/90 


05/16/90 


08/01/90 


05/01/90 


04/09,90 


04/17/90 


05/31/90 


09/01/90 


05/15/90 


04/24,90 


05/01/90 


06/14/90 


09/01/90 


06/01/90 


05/10/90 


05/17/90 


07/01/90 


10/01/90 


06/15/90 


05/24/90 


06/01/90 


07/15/90 


10/01/90 


07/02/90 


06/11/90 


06/18/90 


08/01/90 


11/01/90 


07/16/90 


06/22,90 


06/29/90 


08/15/90 


11/01/90 


08/01/90 


07/11/90 


07/18/90 


08/31/90 


12/01/90 


08/15/90 


07/25/90 


08/01/90 


09/14/90 


12/01/90 


09/04/90 


08/13/90 


08/20/90 


10/04/90 


01/01/91 


09/14/90 


08/24/90 


08/31/90 


10/14/90 


01/01/91 


10/01/90 


09/10/90 


09/17/90 


10/31/90 


02/01/91 


10/15/90 


09/25/90 


10/02/90 


11/14/90 


02/01/91 


11/01/90 


10/11/90 


10/18/90 


11/30/90 


03/01/91 


11/15/90 


10/24/90 


10/31/90 


12/14/90 


03/01/91 


12/03/90 


1 1/08/90 


11/15/90 


01/02/91 


04/01/91 


12/14/90 


11/21/90 


11/30/90 


01/13/91 


04/01/91 


01/02/91 


12/07/90 


12/14/90 


02/01/91 


05/01/91 


02/01/91 


01/10/91 


01/18/91 


03/03/91 


06/01/91 


03/01/91 


02/08/91 


02/15/91 


03/31/91 


07/01/91 


04/01/91 


03/11/91 


03/18/91 


05/01/91 


08/01/91 


05/01/91 


04/10/91 


04/17/91 


05/31/91 


09/01/91 


06/03/91 


05/10/91 


05/17/91 


07/03/91 


10/01/91 


07/01/91 


06/10/91 


06/17/91 


07/31/91 


11/01/91 


08/01/91 


07/11/91 


07/1.8/91 


08/31/91 


12/01/91 


09/03/91 


08/12/91 


08/19/91 


10/03/91 


01/01/92 


10/01/91 


09/10/91 


09/17/91 


10/31/91 


02/01/92 


11/01/91 


10/11/91 


10/18/91 


12/01/91 


03/01/92 


12/02/91 


11/07/91 


11/14/91 


01/01/92 


04/01/92 



* The "Earliest Effective Date" is computed assuming that the public hearing 
and adoption occur in the calendar month immediately following the "Issue 
Date", that the agency files the rule with The Administrati\-e Rules Review 
Commission by the 20th of the same calendar month and that ARRC approves 
the nile at the next calendar month meeting. 



EXECUTIVE ORDER 



EXECUTIVE ORDER MJMHER 106 The State Employees Combined Campaign, es- 
AMENniNG EXECITIVE ORDER MMBER 66 tablished by Iixecutivc Order Number 66, on 
EMENDINC. EXI'IRAIION DAIE OF , on looo u k . ^ ^ ff ,• 
EXECL■TIVE ORDER MMBFR 66 January 29, 1988, is hereby extended, eliective 

January 29, 1990, through January 29, 1992. 

By the authority vested in me as Governor by 

the Constitution and laws of North Carolina, IT Done in Raleigh, North Carolina, this the 22 

IS ORDERED: day of February 1990. 



4:24 NORTH CAROLINA REGISTER March 15, 1990 1163 



PROPOSED RULES 



TITLE 4 DEPARTMENT OF ECONOMIC 
AND CO.MMLJMTY DEVELOPMENT 

lyotice is hereby given in accordance with G.S. 
I SOB- 1 2 that the North Carolina Banking Com- 
mission intends to amend rule(s) cited as 4 
NCAC 3C .0101 - .0102, .0104, .0110 - .0111, 
.020/ - .0202, .0301, .0401, .0403 - .0406, .1301, 
.1501 - .1502; and adopt nde(s) cited as 4 NCAC 
3C .0203 - .0204, .0408. 

1 he proposed effective date of this action is July 
I. 1990. 

1 he public hearing will be conducted at 8:30 
a.m. on April 25. 1990 at North Carolina Banking 
Commission. Dobbs Building - 6th Floor (Room 
6210), 430 North Salisbury Street, Raleigh, North 
Carolina. 



Co 



- omment Procedures: Comments must be sub- 
mitted in writing not later than Friday, April 20, 
J 990. Written comments should be directed to: 

L. McNeil Chestnut 

General Counsel 

North Carolina Banking Commission 

Post Office Box 29512 
Raleigh, North Carolina 27626-0512 

CHAPTER 3 - BANKING COMMISSION 

SUBCHAPTER 3C - BANKS 

SECTION .0100 - ORGANIZATION AND 
CHARTERING 

.0101 APPLICATION 

A new bank, industrial bank or trust company 
shall be incorporated and chartered in the man- 
ner prescribed in G.S. 53-2 through G.S. 53-8 
and in no other way. iXpplicutionf . mui . t bt» m 
tfet* format required a«4 mu - jt be (+1<*4 aloni; V i ith 
t4*t» propo^ ' ud CL ' ilii'icdtL ' ef incorpcMation ft«4 
proL i cribod fee with: A charter application, on an 
fonn approved, together with a cop\' of the pro- 
posed .■Vrticles of Incorporation and payment of 
the prescribed fee, must be tiled with: 
1 he Comrmssioner of Banks 
P.O. Box 0^ 20512 
Raleigh, North Carolma ¥imi 27626-0512. 



Statutory Authority 
I50B-llill. 



G.S. 53-2: 53-92; 



.0102 EXAMINATION BY CO.MMISSIONER 

Upon receipt of a copy of the CL'rtificatc ef m- 
corporation ftft4 ik» application m proper fomi. 



application and articles of incorporation, the 
Commissioner of Banks uhuli will make an ex- 
amination into all the facts connected with the 
formation of ouch the proposed corporation. 
bank or trust company. Such The examination 
jr hull will take into account all statutory require- 
ments and criteria. 



Statutory Authority 
I50B-Il(l). 



G.S. 53-4; 



53-92; 



.0104 REVIEW BY BANKING COMMISSION 

Such The report by of the Commissioner of 
Banks shall will be submitted to the Banking 
Commission at a regular or called meeting. 
Following a public hearing the Banking Com- 
mission I ' hiill will issue its fmal order approving 
or disapproving the application. 



Statutory Authority 
l50B-li(l). 



G.S. 53-4; 



53-92; 



.0110 ORGANIZ.ATIONAL EXPENSES 

(a) Fach oubgcribor **■ Ae time he nubf i cribon to 
t4*e stock e4 a propoL . od ntate bank f i hcdl L pon 
subscribing to the stock of a proposed state bank, 
each subscriber must pay in cash a sum at least 
equal to the aggregate of five and one-half per- 
cent of the par value and surplus of such stock 
into a fund to be used to defray the expenses of 
organization. No organizational expenses shall 
may be paid out of any other funds of the bank. 
Upon the grant of a charter and authorization 
by the Commissioner to commence business, any 
unexpended balance shall must be transferred to 
the permanent surplus account. If the charter 
has been voided for failure to open for business 
within the time set out in the statute after fding 
of the ccilificdte articles of incorporation with the 
Secretary' of State or any additional period al- 
lowed by the Commissioner, or if the application 
has been fmally denied, any unexpended balance 
'i hall must be distributed pro rata to the contrib- 
utors in proportion to their respective payments. 
The Commissioner may require an accounting 
of any disbursements from the fund and may or- 
der the incorporators to restore any sum which 
has been expended for other than proper organ- 
izational expenses. 

(b) ^ro payment shall be mudo fro m (4*e organ 
i/.ational fund fof s e curing subscriptions te shares 
ef stock rf t-he banlc. If commissions or fees are 
to be paid to an\' person, partnership, or corpo- 
ration for secunng suhscnptions to shares of 
stock of the proposed bank, the agreement set- 
ting forth the amount and tenns of such pa\ment 
and the nature of services to be performed must 



II64 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



be submitted to the (x:)mmissioner of Banks in 
advance tor review and approval. 

Statutory Authority G.S. 53-2: 53-92; 53-104; 
I50B-1I(I). 

.011 1 NATIONAL BANK CONVERSION 

(a) A national hank may convL ' rt k* a ! itutL' 
bank. A LX ' rtifiiatu e+' incorporation mu '. t bt» n*- 
ocutc ' d A*rt e««- b*» obtained from aft4 r . hould be 
fA?4 ^'ith: A national bank may appl\- for au- 
thoritv to convert to a state bank. An applica- 
tion for conversion mnst be made on 1 orm 30 
The application for con\ersion, together with a 
copy of the proposed articles of incorporation 
and pa\ment of the prescribed fee, must be tiled 
with: 

44«* S e cr e taPi' »f Stato 

Stat e <r4 Noilh Carolina 

I e ai '. lativ e Office Ruilding 

^Um North Sali ' ibur , - Street 

Raleigh, North Carolina 27611. 

The Commissioner of Banks 



The Commissioner ' ihall will issue to the bank a 
Bank Certificate (I'orm 45) and any Branch 
Certificate (F-orm 47) as needed. 



'.(). Box 2^512 



Raleigh. North Carolina 27626-0512. 
Tb« Socrotapy »f State !ihall forth' . vith traiT . mit » 
copy e+" StH4 certificate »f incorporation k> A<* 
Conimi ' - .i' ioner »f Bankii. 

M*) Application f»f i* national bank k* con> e rt 
te a state bank i* accompli ' jh e d through the e^w- 
cution &f form :^ 44*e form pro>ide ' j fc the 
iiubmission evf required information aft4 eaft be 
obtain e d from aft4 t+le4 with: 

T4*e Commir .'. ioner »f Banko 

Ral e igl-i, North Carolina 27602. 
fb) fe^ Upon receipt of a copy of the c e rtificate 
articles of incorporation and the completed ap- 
plication for conversion, ift proper f(um, the 
Commissioner shall will make an examination 
ixito all the facts connected with the conversion. 
Following the completion of that examination 
the Commissioner will shall prepare a report 
cohering Ae re 'i ults e+' tkte examination aUMTg 
with b+s deci '. ion fof appro v;il e* di ' ^ipprosal e+' 
the application. 44*e report shall be S i ubmilled 
te the Banking ("ommis . sion a4- a r e gular tvf called 
m ee ting, folkv , ' , ing a public hearing Ae Banking 
Commis 'i ion shall i -. s . iie ite final order iippnning 
e* disiipprov ing t+te application, issue a written 
decision appnn'ing or disappro\ing the applica- 



tion. 

(c) (-4+ Upon approval by the Banking Com 
mission, t4te Commissioner of Banks, shall he 
will forward to the SecretaPi' of State for appro- 
priate tiling the Certificate articles of incorjio- 
ration along with a the certification of approval. 



Statutory Authority G.S. 53- 
53-14; 53-104; 1508-11(1). 



53-3; 53-4; 53-5; 



SFXTION .0200 - BRANCIIKS ANH IJMITED 
SEKVICK FACILITIES 

.0201 ESTABLISHMENT OF BRANCHES AND 
LIMll El) SERVICE FACILILIES 

^W bank s i hall Banks may establish a brunch 
^ful, ",!.';"» if^ branches or tell e r's , ' . sindosv ' . vithout Ae limited 
service facilities upon written approval of the 
Commissioner of Banks. 
( 1) Application. Applications mus . t be m- the 
fonnat reL|uired awd filed, together V i ilh f*Fe- 
Gcnbed fees. v . ith: ,\n application to estab- 
lish a branch bank or limited ser\'ice facility 
must be submitted in wnting on fOrm 30. 
together x^ith the pre- 



T he application. 

scribed tee. must be tiled with: 



I he ("ommissioner of Banks 

P.O. Box 0^4- 29512 

Raleigli, North Carolina 27602. 27626-0512. 



(2) Notice of filing of an application. Upon 
acceptance of an application for filing, the 
Commissioner of Banl;s shall will publish a 
notice of the filing of the application in a 
newspaper published in the city, town or 
county where the branch or teller's \sindow 
limited sen, ice facility is proposed to be lo- 
cated. /\ copy of the notice shall will be 
mailed to each state-chartered bank operat- 
ing a banking office in the community to be 
served by the proposed branch or teller's 
window, limited service facility. A copy of 
the notice shall \\\\\ be mailed to the Re- 
gional Administrator of National Banks for 
the National Bank Region for North 
Carolina. 

(3) Written comments. Any interested person 
may submit to the Commissioner of Banks 
written comments and information on an 
application witlun 14 days after the notice 
has been published as pro\idcd in Paragraph 
(2) of this Rule. All written comments re- 
ceived during the comment period shall will 
become part of the official record compiled 
with respect to the application. The Com- 
missioner of Banks ma)' extend the com- 
ment period if he shcdl determine determines 
that there are extenuating circumstances. 

(4) Examination by Commissioner. Upon 
receipt of an- a completed application, » 
proper fonn the Commissioner of Banks 
shall will conduct an examination into all 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



II 65 



PROPOSED RULES 



the facts connected with the establishment 
of s«efe a branch or toUor'o window. limited 
service facility. 

(5) Action by Commissioner. No final deci- 
sion may be made by the Commissioner of 
Banks until the comment period has ex- 
pired. The final decision of the Commis- 
sioner of Banks on an application r . hall will 
be in writing and shall include findings of 
fact and conclusions of law. 

(6) Notification of Commissioner's action. 
The applicant and all persons who have 
made written requests for such f . hall notice 
will be given notice of the Commissioner of 
Banks' fmal decision on each application. 

(7) Request for review by Banking Commis- 
sion. The applicant or any interested person 
may request the State Banking Commission 
to review the decision of the Commissioner 
of Banks with respect to an application to 
establish a branch or tell e r's window limited 
servace facility within 14 days from the time 
the Commissioner of Banks issues his writ- 
ten decision. Such The request for review 
must be in writing and must be sent to the 
address shown in Paragraph (1) of this Rule. 

(8) Review by Banking Commission. When 
requested by the applicant or any interested 
person, the decision of the Commissioner 
of Banks shttW will be reviewed at a public 
hearing by the State Banking Commission 
at its next regular or called meeting. Fol- 
lowing the public hearing, the State Banking 
Commission shall will issue its fmal order 
approving, modifying or disapproving the 
decision of the Commissioner of Banks. 
Notice of the public hearing shall will be 
published in a newspaper published in the 
city, town or county where the proposed 
branch or toller's ' . ' . indo^' .' limited service fa- 
cility is to be located at least ten days prior 
to the scheduled hearing. 

(9) Decision by Commissioner final. If there 
has been no written request for review 
within the 14-day period as provided in 
Paragraph (7) of this Rule, the decision is- 
sued by the Commissioner of Banks shall 
wiU become fmal with respect to the appli- 
cation. 

(10) Waiver by Commissioner. Wfierc a bank 
acquires one or more branches or tcUors' 
' . vindows limited service facilities in con- 
nection with a reorganization in which the 
Commissioner of Banks or other bank reg- 
ulator has found one or more banks to be 
in an insolvent, unsafe or unsound condi- 
tion, the requirements of this Rule pertain- 
ing to notice and publication, time 



limitations, and comment may be waived by 
the Commissioner of Banks. 

Statutory Authority G.S. 53-4; 53-62; 53-92; 
I50B-II(1). 

.0202 BRANCH CLOSING 

No bank shall discontinu e may close a branch 
ef toller's window without the written approval 
of the Commissioner of Banks. 

(1) Procedure. The procedures provided in 
G.S. 53-62(e) shall must be followed in 
connection with any branch or teller's win- 
dow discontinuanc e , closing. The required 
public notice to be published shall must be 
approved by the Commissioner of Banks 
prior to publication. 

(2) Written comments. Any interested person 
may submit to the Commissioner of Banks 
written comments and information on an 
application to discontinue within 14 days 
after the last notice has been published as 
required by G.S. 53-62(e). /Ml written 
comments received during the comment pe- 
riod shall will become part of the official re- 
cord compiled with respect to the 
application. The Commissioner of Banks 
may extend the comment period if he shall 
dotormino determines that there are exten- 
uating circumstances. 

(3) Examination by Commissioner. Upon 
receipt of a certification an application, the 
Commissioner of Banks shall wiU conduct 
an examination into all the facts connected 
with the disGontinuanco ef such request to 
close a branch. »f teller's ' ■ ' . indow. The 
Commissioner of Banks shall will hold a 
public hearing as provided in G.S. 53-62(e) 
if there has been an appropriate request by 
an interested person. 

(4) Action by Commissioner. No final deci- 
sion may be made by the Commissioner of 
Banks until the comment period has ex- 
pired. The fmal decision of the Commis- 
sioner of Banks on an application to 
discontinue shall will be issued in writing 
and shall include findings of fact and con- 
clusions of law. 

(5) Notification of Commissioner's action. 
The applicant and aO persons who have 
made written requests for such shall notice 
will be given notice of the Commissioner of 
Banks' final decision on each apphcation. 

(6) Request for review by Banking Commis- 
sion. The applicant or any other interested 
person may request the State Banking 
Commission to review the decision of the 
Comniissioner of Banks with respect to an 



1166 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



application to discontinue a branch ef 
tollor's window within 14 days from the time 
the Commissioner of Banks issues his writ- 
ten decision. Such The request must be in 
writing and sent to: 

The Commissioner of Banks 

P.O. Bo.\Q»4- 29512 

Raleigh, North Carohna ¥W^ 27626-0512. 

(7) Review by Banking Commission. When 
requested by the applicant or by any inter- 
ested person, the decision of the Commis- 
sioner of Banks i . hall will be reviewed at a 
public hearing by the State Banking Com- 
mission at its next regular or called meeting. 
Following the public hearing, the State 
Banking Commission nhall will issue its final 
order approving, modifying or disapproving 
the decision of the Commissioner of Banks. 
Notice of the public hearing shall will be 
published in a newspaper published in the 
city, town or county where the branch e* 
toller's window is to be discontinued at least 
ten days prior to the scheduled hearing. 

(8) Decision by Commissioner final. If there 
has been no written request for review 
within the 14-day period as provided in 
Paragraph (6) of tliis Rule, the decision is- 
sued by the Commissioner of Banks shall 
will become final with respect to the appli- 
cation to discontinue. 

(9) Waiver by commissioner. Where a bank 
discontinues one or more branches ©f toUoro' 
' I ' l indo' i VH in connection with a reorganiza- 
tion in which the Commissioner of Banks 
or other bank regulator has found one or 
more banks to be in an insolvent, unsafe, 
or unsound condition, the requirements of 
this Rule pertaining to notice and publica- 
tion, time limitations, and comment may be 
waived by the Commissioner of Banks. 

Statutory! Authority G.S. 53-4; 53-62; 53-92; 
150B-II(I). 

.0203 DISCONTINUANCE OF A Ll.MITED 
SKRVICE [<AC[LITY 

(a) A bank may close a Limited service facility 
upon 30 days written notice to the Commissioner 
of Banks at the address set forth in Paragraph (1), 
provided that the facility has not within a five 
year period immediately proceeding the proposed 
date of closing operated as a branch bank. If the 
limited service facility which the bank proposes 
to close has operated as a branch bank within a 
five year period immediately proceeding the pro- 
posed closing date, then the procedure set forth 
in 4 NCAC 3C .0202 must be foUowed. 



(b) For the purpose of this Rule, any bank and 
office approved as a "teller's window" prior to 
.July 1, 1989, is considered and wiU be treated as 
a limited service facility. 

Statutory Authority G.S. 53-62; I50B-II(I). 

.0204 CONVERSION OF BRANCH TO 
LIMITED SERVICE FACILITY 

A bank may convert a branch to a hmited ser- 
vice facility upon written approval of the Com- 
missioner of Banks. 

(1) Procedure. Any bank desiring to convert 
an existing branch to a limited service facility 
must apply in writing for authority to do so 
from the Commissioner of Banks and pay 
the prescribed fee. The letter must identify 
the name and' location of the branch to be 
converted, the reason for the conversion, the 
ser\'ices presently offered at the branch, and 
the ser\'ices that will be discontinued upon 
conversion. 

(2) Publication. L'pon receipt of a written re- 
quest for authority to convert a branch to a 
limited service facility, the Commissioner of 
Banks will publish once a week for two 
consecutive weeks in a newspaper published 
in the city, town or county in which the 
branch to be converted is located, a public 
notice of the request to convert. This pub- 
lication must include the name and location 
of the branch to be converted, and must 
identify the services presently offered at the 
branch that wiU be discontinued upon con- 
version. 

(3) Written comments. /Vny interested person 
may submit to the Commissioner of Banks 
written comments and information on an 
application to convert a branch to a limited 
service facility within 14 days after the last 
notice has been published pursuant to Para- 
graph (2) of this Rule. AU written com- 
ments received during the comment period 
will become part of the official record com- 
piled with respect to the application. The 
Commissioner of Banks may extend the 
comment period if he determines that there 
are extenuating circumstances. 

(4) Examination by Commissioner. Upon re- 
ceipt of an application to convert, the 
Commissioner of Banks will conduct an ex- 
amination into aU the facts connected with 
the conversion of a branch. The Commis- 
sioner of Banks will hold a public hearing if 
there has been an appropriate request by an 
interested person. ^ 

(5) Action by Commissioner. No final deci- 
sion may be made by the Commissioner of 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1167 



PROPOSED RULES 



Banks until the comment period has ex- 
pired. The final decision of the Commis- 
sioner of Banks on a request to convert a 
branch to a limited service facility wUl be is- 
sued in writing and include findings of fact 
and conclusions of law. 

(6) Notification of Commissioner's Action. 
The applicant and all persons who have 
made written requests for notice will be 
given notice of the Commissioner of Banks' 
final decision on each appfication. 

(7) Request for Review by Banking Commis- 
sion. The applicant or any other interested 
person may request the State Banking 
Commission to review the decision of the 
Commissioner of Banks with respect to an 
application to convert a branch to a limited 
service facility within 14 days from the time 
the Commissioner of Banks issues his writ- 
ten decision. The request must be in writing 
and sent to: 

The Commissioner of Banks 

P.O. Box 29512 

Raleigh, North Carolina 27626-0512 

(8) Decision by Commissioner Final. If there 
has been no written request for review 
within the 14-day period as provided in 
Paragraph (7) of this Rule, the decision is- 
sued by the Commissioner of Banks will 
become final with respect to the request to 
convert. 

Statutory Authority G.S. 53-62; 53-92; 
l50B-li(l). 

SECTION .0300 - CHANGE OF LOCATION 

.0301 CHANGE OF LOCATION/MAIN OFFICE, 
BRANCH OR LTD SVC FACILITY 

No bank i . huU may change the location of a 
branch, tolic ' r'T i window limited service facility or 
main office without the wnttcn approval of the 
Commissioner of Banks. 

(1) Application. Applications must be in the 
format required and filed, together with the 
prescribed fewrr fee, with: 

The Commissioner of Banks 

P.O. Bo.xO^ 29512 

Raleigh, North Carolina 27602. 27626-0512. 

(2) Notice of filing of an application. Upon 
acceptance of an application for filing, the 
Commissioner of Banks iihuU will publish a 
notice of the filing of the application in a 
newspaper published in the city, town or 
county where the branch, tL'llor' ' j ' i vindosv 
limited service facility or main olTice is to be 
located. A copy of the notice r . hall will be 
mailed to each state-chartered bank operat- 



ing a banking office in the community 
served by the branch, tL'Uor'o window limited 
ser\'ice facility or main office. A copy of the 
notice F i hall wiU be mailed to the Regional 
Administrator of National Banks for the 
National Bank Region for North Carolina. 

(3) Written comments. Any interested person 
may submit to the Commissioner of Banks 
written comments and information on an 
application within 14 days after the notice 
has been published as provided in Paragraph 
(2) of this Rule. All written comments re- 
ceived during the comment period shall wiU 
become part of the official record compiled 
with respect to the application. The Com- 
missioner of Banks may extend the com- 
ment period if he r . hall dct ermine determines 
that there are extenuating circumstances. 

(4) Examination by Commissioner. Upon re- 
ceipt of aft a completed application » 
proper form for relocation the Commis- 
sioner of Banks t i huU will conduct an exam- 
ination into all the facts connected with the 
change of location. »f such brunch, teller's,; 
window »f main office. 

(5) Action by Commissioner. No fmal deci- 
sion may be made by the Commissioner of 
Banks until the comment period has ex- 
pired. The final decision of the Commis- 
sioner of Banks on an application r . hull will 
be issued in writing and shall will include 
findings of fact and conclusions of law. 

(6) Notification of Commissioner's action. 
The applicant and all persons who have 
made written recjuest for ouch i . hall notice, 
will be given notice of the Commissioner of 
Banks' final decision on each application. 

(7) Request for review by Banking Commis- 
sion. The applicant or any interested person 
may request the State Banking Commission 
to review the decision of the Commissioner 
of Banks with respect to an application to 
relocate a branch, teller's svindow limited 
service facility or main office within 14 days 
from the time the Commissioner of Banks 
issues his written decision. Such The re- 
quest for review must be in writing and must 
be sent to the address shown in Paragraph 
(1) of this Rule. 

(8) Review by Banking Commission. When 
requested by the applicant or any interested 
person, the decision of the Commissioner 
of Banks shall will be reviewed at a public 
hearing by the State Banking Commission 
at its next regular or called meeting. Fol- 
lowing the public hearing, the State Banking 
Commission shall will issue its final order 
approving, modilVing or disapproving the 



116S 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



decision of the Commissioner of Banks. 
Notice of the public hearing shaW will be 
published in a newspaper published in the 
city, town or county where the branch, 
toiler's window limited service facility or 
main office is to be located at least ten days 
prior to the scheduled hearing. 
(9) Decision by Commissioner fmal. If there 
has not been ho a written request for review 
within the 14-day period as provided in 
Paragraph (7) of this Rule, the decision is- 
sued by the Commissioner of Banks shall 
will become final with respect to the appli- 
cation. 

Statutoiy Authority G.S. 53-62; 53-92. 

SECTION .0400 - CONSOLin.ATION OF B.\NKS 

.0401 AIM'LIC.\TION 

(a) Before a bank shall may consolidate with 
or transfer its assets and liabilities to another 
bank it shall must first obtain the consent of the 
Commissioner of Banks. This Rule shall does 
not apply where such the consolidation or merger 
is with a national bank and the surviving corpo- 
ration is to be a national bank. 

fb^ i\pplication fof such consont shall b# a<^ 
compli ' - ' hL'd by At> filing with U** Commissionur 
e+" Banlcs CLMlificd copi e s ef all- procoodingo hTi4 
by tbt* banks' directors a«4 stockholdurs a^ weW 
a* a complotL' copy t4 t4*e agroomont made* a«4 
LMitorcd iftk+ bot' i VOL'n At* banks, ssilh rL'toruncc te- 
such coiisolidation t+f trctusfor nfi^ t+w oxocution 
©f Fl^lC ['omi 4437 That form incoi-poratos aW 
statutoiy roquiromonts aft4 criteria im4 contains 
mark e ting LJata. xirious financud schodiik's aH4 
appropnate cons ^ ideratitm h+ competiti' ie factors. 
44*e to mi f»ay be obliun e d from: 

(b) Application for consent to consolidate must 
be accomplished bv filing with the Commissioner 
of IJanks the following: 

( 1 ) certified copies of all the procccdinus bv 
the banks' directors and stockholders: 

(2) a copy of the aurecmcnt to consolidate: 
and 

(3) 1 Die borm 1(12. 

The latter fonn incorporates all statutoi^v re- 
quirements and cnlena and contains marketing 
data, \anous financial schedules and appropnate 
consideration of competitive taclors. 1 he torm 
ma\' be obtained trom: 

Regional Director 

- lederal Deposit Insurance Corporation 

?|^ i^ Matft Street. ^kHte JQOO 

Richmond. Virginia 232 b'i 

Marciuis One lower 



245 Peachtree Center Avenue, N.F., Suite 1200 
Atlanta, (ieoriaa 30303 

and should be filed, together with the prescribed 
fee, with: 

The Commissioner of Banks 

P.O. Box 044- 29512 

Raleigh, North CaroUna 27602. 27626-0512. 

Statutorv Authority G.S. 53-12; 53-92; 
l50B-li(l). 

.0403 INAESTIGATION 

Upon receipt of t4+e a completed application for 
consolidation wi proper form the Commissioner 
of Banks shall make an investigation into all the 
facts connected with the proposed consolidation. 
Such The investigation shall will take into ac- 
count all statutory requirements and criteria. 



Statutory 
I50B-II(I). 



Authority G.S. 53-/1 



53-92; 



.0404 RF.I'ORT 

Following the completion of ihai- the insesti- 
gation, the Commissioner of Banks shall prepare 
a issue a written report cosenng (4+e re '. ulls t+f 
tbat- in' i es i tigation along with including his deci- 
sion for approval or disapproval of the applica- 
tion. 



Statutory .Authority 
I50B-Ii(l). 



G.S. 53-/2; 53-92; 



.0405 REMEW in HIE BANKING COMMISSION 

■Such report by f4+e Commissioner (-4 Banks 
shall The Commissioner's report will be submit- 
ted to the Banking Commission at a regular or 
called meeting. Following a public hearing, the 
Banking Commission shall will issue its final or- 
der approving or disappro\ing the application. 

Statutory Authority G.S. 53-/2; 53-92; 
/50B-/ /'(/). 

.0406 EIEING Willi SECRE^VR^ Ol SI AIE 

l.'pon the consummation of such the consol- 
idation, the agreement of consolidation, along 
toijcther with a certified copy of the approval by 
tlie Commissioner of Banks, shall be filed with 
the Secretary of State. 



Statutoiy .Authority 
/ 50 B-/ /'{/). 



G.S. 53-/3; 53-92 



.0408 PLBI.ICATION 

Notice of the consolidation or transfer must be 
pubhshcd for four weeks before or after the same 



4:24 NORTH CAROLIN.A REGISTER March 15, 1990 



1169 



PROPOSED RULES 



is to become effective, at tiie discretion of the 
Commissioner of Banks, in a newspaper pub- 
lished in a city, town, or county in which each 
said bank for consolidation is located. A certified 
copy of the affidavit of publication must be filed 
with the Commissioner of Banks. 

Statutoiy Authority G.S. 53-12; 53-92; 
I50B-1I(I). 

SECTION .1300 - B.ANK PERSONNEL 

.1301 ANNUAL VACATION 

(a) Every bank or branch thereof under the 
supervision of the Commissioner of Banks, uhall 
must grant to each officer and to- oauh employee 
an annual vacation period of at least six working 
days. Such The annual vacation period must be 
granted on consecutive working days and each 
officer and oach employee shall must remain ab- 
sent from his duties continuously fof Ae sa*4 
numbor ef woricing days: througliout the vaca- 
tion period. Provided, however, that any bank 
or branch that remains closed on Saturdays and 
Sundays must tvp othL'rwir . L' opc ' iat e- .i »» a fi' i x' day 
V i L'ok, *T pro' i idod by lawr shull grant to each of- 
ficer and fr& oach employee an annual vacation 
period of at least five consecutive working days. 
Upon request of any bank or branch thereof, the 
Commissioner of Banks, in his discretion, may 
waive the provisions of this regulation so far as 
it pertains to any individual officer or employee, 
or group or class of officers or employees, when, 
in the Commissioner's opinion, ouch the waiver 
would not be inconsistent with the general pur- 
poses of this regulation. 

(b) This Regulation r . hall apply »ftly does not 
apply to those officers and employees who have 
been in a bank's employment for a period of 
mor e less than one year. Neither does this Reg- 
ulation apply to employees of a bank's in corpo- 
rated subsidiary when the employee does not 
pertorm any banking services or duties for the 
parent bank. 

Statutoty Authority G.S. 53-92; 53-104: 
l50B-ll(l). 

SECTION .1500 - AUTOMATION AND DATA 
PROCESSING 

.1501 CUSTOMKR-BANK COMMUNICATION 
TERMINALS 

(a) A state bank may make available for use 
by its customers one or more electronic devices 
or machines through which the customer may 
communicate to the bank a request to withdraw 
money either from his account or from a previ- 



ously authorized line of credit, or an instruction 
to receive or transfer funds for the customers' 
benefit. The device may receive or dispense cash 
in accordance with such a request or instruction, 
subject to verification by the bank. Such These 
devices may be unmanned or marmed by a bona 
fide third party under contract to the bank, 'fhe 
bank for a reasonable period of time may provide 
one of its employees to instruct and assist cus- 
tomers in the operation of the device. Any 
transactions initiated by such a device shall be 
subject to verification by the bank either by di- 
rect wire transmission or otherwise. 

(b) Use of such devices at locations other than 
the main office or a branch office of the bank 
does not constitute branch banking. A bank 
shall provide insurance protection under its 
bonding program for transactions LnvolvLng such 
devices. 

(c) No device for which notice must be given 
under this Rule may be established or used by a 
state bank at a distance greater than 50 miles 
from the bank's main office or closest branch, 
whichever is nearer, unless such device or ma- 
chine is available to be shared at a reasonable 
cost by one or more local (i.e., within the trade 
area of the device or machine) fmancial insti- 
tutions authorized to receive deposits, such as a 
commercial bank, a savings and loan association, 
or a credit union. 

(d) Written notice must be given to the Com- 
missioner's office 30 days before changing any of 
the operations described in a notice previously 
given pursuant to this Paragraph. One or more 
state banks sharing one or more devices or ma- 
chines may give a single notice to the Commis- 
sioner's office, provided that the notice includes 
the information listed in Paragraph (1) of Rule 
.1502 of this Section for each shared device or 
machine. The Commissioner reserves the right 
to adopt different reporting procedures as war- 
ranted by the circumstances of a particular net- 
work of devices or machines. 

(e) No notice need be given for any device or 
machine which is used only to transfer funds for 
goods or services received, and through which 
neither cash is dispensed nor cash or checks left 
for subsequent deposit; is used solely to verify a 
customer's credit for purposes of check casliing 
or of a credit card transaction; or is a part of a 
bank's authorized main office or branch. 

Staiutorv Authority G.S. 53-62; 53-92; 53-/04; 
I50B-II{I). 

.1502 LIMITATIONS 

The establishment and use of these devices is 
subject to the following limitations: 



1170 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



(1) Contents of Notice. Written notice must 
be given to the Commissioner of Banks' of- 
fice 30 days before any such device is put 
into operation. Such The notice ohall must 
describe with regard to the device or ma- 
chine: 

(a) the location; 

(b) a general description of the area where it 
is located--e.g., shopping center, gasoline 
station, supermarket-and the manner of 
installation--e.g., free standing, exterior 
wall, separate interior booth; 

(c) the manner of operation, including 
whether the device is on-line; 

(d) the kinds of transactions which will be 
performed; 

(e) whether the device will be manned, and, 
if so, by whose employees; 

(f) whether the device will be shared, and, if 
so, under what terms and with what other 
institutions and their locations; 

(g) the manufacturer and, if owned, the pur- 
chase price or, if leased, the lease pay- 
ments and the name of the lessor; 

(h) the distance from the nearest banking of- 
fice and from the nearest similar device of 
the reporting bank; 

(i) the distance from the nearest banking office 
and nearest similar device of another 
commercial bank, which will not share the 
facility, and the name of such other bank 
or banks; and 

(j) consumer protection procedures, includmg 
the disclosure of rights and liabilities of 
consumers and protection against 
wrongful or accidental disclosure of con- 
fidential information. 

(2) To the extent consistent with the antitrust 
laws, state banks are permitted, but not re- 
quired, to share such devices with one or 
more financial institutions. 

Statuton' Authority G.S. 53-62; 53-92; 53-104; 
I50B-Il(l). 

•k'k'k'k'k-k'k-k-k-^-k-k-k-kii-k-k-k 



No 



otice is hereby gtfen in accordance with G.S. 
150B-I2 that the Savings Institutions Division in- 
tends to amend nde(s) cited as 4 NC.4C I6A 
.0/03 - .0105; I6B .000/ - .0002; /6C .0/0/. 
.0201. .040/ - .0403. .050/, .0503; /6D .0/0/, 
.0202. .030/, .0403 - .0405, .0407, .0806 - .0807, 
.090/: I6F .000/ - .0002. .0005; /6H .000/, 
.0007; /6I .0702 - .0^03, .080/ - .0803. .090/ - 
.0902, ./OO/, ./003, .//O/ - .//02, .//04 - .//06; 
/6J .000/ - .0002; repeal ndc(s) cited as 4 ^CAC 



/6D .0/02, .0/04. .0406. .0408, .0503, .0505. 
.060/ - .0602; /6F .0004; 161 .0701, .0903 - 
.0904; and adopt rule(s) cited as 4 NCAC /6A 
.020/ - .0203, .030/ - .0302, .040/ - .0409; /6C 
.0304 - .0305; /6D .0902; /6l .0704, ./20/ - 
./203, ./30/ - ./302. 

1 he proposed effective date of tliis action is .luly 
/, /990. 

1 he public hearing will be conducted at 10:00 
a.m. on .April /7, /990 at Room 2/60, Dobbs 
Building, Raleigh, N.C. 

(^ omment /Procedures: Written comments must 
be received at the agency address by 5:00 p.m.. 
April /6, /990. Oral presentations of up to ten 
minutes may be made at the Hearing. Any 
questions concerning rules or the Hearing may be 
directed to Ronald Raxter at (919) 733-3525. 

CHAF'TKR 16-S.\MNGS INSTITLTIONS 

DIVISION: SAVINGS INSTITLTIONS 

COVIMISSION 

SUBCHAPTER I6A - GENERAL PROVISIONS 

SECTION .0100 - GENERAL 

.0103 DEFINITIONS 

W'hc ' n uwd m (44^ (Chapter. Ai* following ' ■ sords 

H«4 phru^jLMi r i hall hr+vt* t4*^ following mLHiningi . , 

except k* t+H* L ' .xtL ' nt t4»t- imf laich word t+f phru ' - i O 

» specifically qualified by ite contest: 

f-l^ "i\dmini 'i trator" mean * ' . t4*e Adminir . trator 

b( t+te Sa' i 'ingLi a«4 1 oan Div i ' - . ion. 
fS) "Ai . r i ociiilion" moan;; a sasingn ttft4 loan 
aof i ociation subject te tfee provi ' .iion ' j trf tl4& 
Chapter. 
(4} '(^immiiiiiion" moans th* Savings stpt4 

Loan Commi ;. si(tn. 
(4} "Immediate family" means a person's 



opouso, father, mother, childr e n, brothers, 
sisters »ft4 grandchildren: t4» father, mother, 
brothers rt«4 sister ;, of such per -. on' '. spou '. e; 



a«4 tht» spouse t4" » child, brother t*f- si '. ter 

ef such per 'i on. 
Unless othen\ise indicated, words and phrases 
defined by (i.S. 54 B -4 shall ha\'e the same 
meaning in this CHiapter. 

Statutory: Authority G.S. 54B-55. 

.0104 SLPERMSORV FEE 

The annual supervisory fee for associations and 
holding companies shall be collected in the 
month of July. This fee shall be non-refundable. 
unless aft application te- conseil k+ » tederal 
charter »f w* application te merge ha* been ftkni 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1171 



PROPOSED RULES 



with Ae Savings a«4 loan Disdsion prior te- A» 
beginning ef July. A refund »f tb« fee shall be 

ift Ae yeaf aftor the ufToctivo tfete el- the convor 
&je» te fodoral chart or »f the olToctive date »f the 
morgor undor stat e ktwr 

Statutory Authority G.S. 54B-55; 54B-57. 

.0105 RKSIKICTIONS: I'AYIVIENT OF 

DIViDKNDS A^D REPURCHASE OF 
STOCK 

(a^ Notwithstanding the provisions »f Para 
graphs (44 afwi (*4 »f A+s Ruk * , a stock associ 
ation jihall Be+ dt ' olar e e* pay any form ef 
dii i idend »» its capital stock unless the associ 
ation has the prior written approval ef the A4- 
ministrator. 

(a) (44 A stock association shall not declare or 
pay a cash dividend on, or repurchase any of, its 
capital stock if the effect thereof would be to re- 
duce the net worth of the association to an 
amount which is less than five poroont &f the as- 
sociation's total outstanding wilhdravvabl e ae- 
counts. -Pof the purpo i. cs . «4~ th+s Paragraph, "not 
worth" moau j i capital slock plus additional paid 
in capital, undisidod profits aftd general reserve 
accounts fef unspecifi e d loss e s, the minimum 
required by the federal regulatory authority. 

(b) i^ Without the prior written approval of the 
Administrator, a stock association which has 
been in operation or converted from mutual form 
for less than 4-0 five years shall not repurchase 
any of its capital stock. 

(c) (4) A stock association which has been in 
operation or converted from mutual form for less 
than 44 five years shall obtain the written ap- 
proval of the Administrator before declaring or 
paying a cash dividend on its capital stock in an 
amount in excess of one-half of the greater of: 

(1) the association's net income for the most 
recent fiscal year end; or 

(2) the average of the association's net income 
after di\idcnds for the most recent fiscal 
year end and not more than two of the 
immediately preceding fiscal year ends, if 
applicable. 

(d) (e) For a period of three years following the 
date of completion of a conversion from mutual 
to stock form, no person shall, directly or indi- 
rectly, offer to acquire or acquire the beneficial 
ownership of more than ten percent of any class 
of an equity security of the converted association 
without the prior written approval of the Ad- 
ministrator. Securities beneficially owed in \io- 
lation of this Paragraph in excess of ten percent 
shall not be counted as shares entitled to vote 
and shall not be voted by any person or counted 



as voting shares in connection with any matters 
submitted to the stockholders for a vote. Unless 
made applicable by the Administrator by prior 
advice in writing, the restriction contained in this 
Paragraph shall not apply to any offer or an- 
nouncement of an offer which if consummated 
would result in the acquisition by a person, to- 
gether with all other acquisitions by that person 
of the same class of securities during the preced- 
ing 12-month period, of not more th;m one per- 
cent of the class of securities. Nor shall this 
Paragraph apply to: 

( 1 ) any offer with a view toward pubUc resale 
made exclusively to the association or its 
underwriters or the selling group acting 
on its behalf; or 

(2) any offer to acquire or acquisition of ben- 
eficial ownership of more than ten percent 
of the common stock of an association by 
a corporation whose ownership is or wiU 
be substantially the same as the ownership 
of the association, provided that the offer 
or acquisition is made more than one year 
following the date of completion of the 
conversion. 

Statutory Authority G.S. 54B-43: 54B-55. 

SECTION .0200 - RULE-MAKING HEARINGS 

.0201 I'EI niON FOR ADOPTION: 

AMENDMENT OR REPEAL OF RULES 

(a) Right to Petition. Any interested person 
may petition the y\dministrator to promulgate, 
amend, or repeal an administrative rule. 

(b) Form of Petition. The petition shall be in 
writing, signed by the petitioning party or parties 
and must include the address of the petitioning 
party. In addition, the petition shall contain the 
following information: 

(1) a draft of the proposed rule, amendment 
or repeal or a summary thereof; 

(2) the reason(s) for the proposal; 

(3) the effect on existing rules or orders or 
both; 

(4) any data showing the probable effect of the 
proposal on existing practices in the area 
involved, including cost; and 

(5) the names of those most likely to be af- 
fected by the proposal with addresses if 
reasonably known. 

(c) Address for Petition. Petitions shall be 
addressed to the Division at its mailing address. 

(d) Disposition of Petition. Upon receipt of a 
petition, the Administrator will make a study of 
the facts stated in the petition and an\- additional 
information he deems relevant. The Adminis- 
trator's disposition of the petition will be made 



1172 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



in one of the following forms within 30 days of 
receipt of the petition: 

(1) a written denial of the proposal setting 
forth the reasons for such denial, or 

(2) a written communication to the petitioner 
indicating the Administrator's plan to ini- 
tiate rulemaking procedures pursuant to 
G.S. 150B-12. 

Statutory Authority G.S. 548-55; I50B-I2. 

.0202 NOTICE OF RULE-MAKING HEARINGS 

Any person or agency desiring to be placed on 
the mailing list for the Administrator's rule- 
making notices may file such request by furnish- 
ing a name and mailing address in writing to the 
Division at its mailing address. The request must 
state the subject areas within the authority of the 
Administrator's office for which the notice is re- 
quested. The Administrator may require rea- 
sonable postage and stationery costs to be paid 
by persons receiving such notices. 

Statutory Authority G.S. 1508-12. 

.0203 RL'LE-.MAKING HEARINGS: GENERAL 
INFORMATION 

The hearing officer shall have complete control 
of the proceedings, including extensions of any 
time requirements, order of presentations, time 
allotments for presentations, direction of the flow 
of the discussion and the management of the 
hearing. Each person participating in the hearing 
shall be given a fair opportunity to present views, 
data and comments. 

Statutory Authority G.S. 1508-12. 

SECTION .0300 - DECLARATORY RULINGS 

.0301 PETIIION FOR DECLARATORY 
RULING 

(a) Petitioner Must Possess Interest. The 
petitioner must possess such an interest in the 
question to be ruled on that the petitioner's need 
to have such a ruling in order to comply with 
statutory' requirements. Division rules, or Divi- 
sion poUcy shall be apparent from the petition 
and shall be fully explained therein. 

(b) Form and Content of Petition. The peti- 
tion shaU be typewritten and shall contain the 
name and address of the petitioner, the specific 
factual situation involved, the question or 
questions sought to be answered, and the iden- 
tification of the rules, statutes, or orders applica- 
ble to the question presented. 

(c) Written Brief May Be Submitted. The 
petitioner may submit a written brief, but oral 



argument shall not be allowed unless deemed 
necessary by the Administrator. 

(d) Mailing Address. All requests for 
declaratory rulings shall be mailed to the Division 
at its mailing address. 

Statutory Authority G.S. 1508-17. 

.0302 RESPONSE OF ADMINISTRATOR TO 
PETITION 

(a) Written Response. A written response to 
the petition for a declaratory ruling, whether in 
the form of a declaratory ruling or a refusal to 
issue a declaratory ruling, shaU be signed by the 
Administrator or his designated representative 
within 60 days following the date on which the 
petition was received by the Division. 

(b) Refusal to Issue Declaratory Ruling. The 
Administrator may refuse to issue ai declaratory 
ruling if one of the following circumstances ex- 
ists: 

(1) The subject matter is one in which the 
Administrator has no authority to issue a 
binding decision; 

(2) The situation is one in which the amount 
of work that would be required by the 
Administrator and staff to issue the 
declaratory ruling would be the same as 
or greater than the work required to 
process the request through normal pro- 
cedures or a contested case proceeding; 

(3) The petition does not state with enough 
specificity the factual situation involved, 
or the question is presented in such a 
manner that the Administrator cannot 
determine what the question is, or that the 
Administrator cannot respond with a spe- 
cific ruling that will be binding on all 
parties; 

(4) The petitioner does not, in the opinion of 
the Administrator, possess sufficient in- 
terest in the question to be ruled on; or 

(5) For any other reason the Administrator 
finds the issuance of a declaratory' ruling 
to be undesirable. 

Statutory Authority G.S. 1508-17. 

SECTION .0400 - ADMINISTR.ATIVE 
HEARINGS 

.0401 RIGHT TO HEARING 

Whenever the Administrator acts in such a way 
as to affect the rights, duties or privileges of a 
specific identified party, the party may appeal for 
a fmal decision by the Administrator in accord- 
ance with Article 3A of G.S. 150B. 

Statutory Authority G.S. 150B-3S. 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1173 



PROPOSED RULES 



.0402 INFORMAL SETTLEMENT 

(a) Attendance at Settlement Conference. Be- 
fore a hearing request can be acted upon, a per- 
son must fu"st make an effort to resolve the 
matter with the Division informally and must 
attend and participate in any scheduled meetings 
or conferences. 

(b) Settlement Statement. A proposed settle- 
ment, including a stipulated statement of facts, 
shall be set forth in writing by the Division. If 
the proposed settlement is agreed to by all parties 
to the matter, it shall represent the fmal disposi- 
tion of the matter and shall be signed by all par- 
ties to the matter or their legal representatives. 
If the proposed settlement is not agreed to and 
signed by all parties, then the matter shall pro- 
ceed as provided in this Section. 

Statutory Authority G.S. 5S-9. 

.0403 REQUEST FOR HEARING 

(a) Form of Request. A request for an ad- 
ministrative hearing must be in writing and must 
contain the following information: 



name and address of the person requesting 

the hearing, 

a concise statement of the action by the 

Administrator that is being challenged, 
a concise statement of the manner in 

which the petitioner is aggrieved, and 

a clear and specific demand for a public 

hearing. 

Address For Request. The request for 
hearing shall be filed with the Division at its 
mailing address. 



(1) 
(2) 
(3) 
(4) 
(b) 



Statutory Authority G.S. 5S-9; J50B-3S. 

.0404 NOTICE OF HEARING 

Notice of a public hearing shall be given in 
writing to the appropriate parties in advance of 
the hearing date as required by the law applicable 
to the hearing being held. 

Statutory Authority G.S. I50B-23. 

.0405 INTERVENTION IN .\N 

ADMINISIRATIVE HEARING 

(a) Petition to Intervene. A petition to inter- 
vene may be permitted if timely and if the peti- 
tion meets the criteria set forth in G.S. lA-1, 
Rule 24(b). 

(b) Intervention Criteria. In addition, the Ad- 
ministrator, in his discretion, may allow inter- 
vention or limited intervention when: 

(1) Sunilar rights will be affected; 

(2) Intervention will not confuse issues; 



(3) Issues are the same or similar to the issue 
in question; 

(4) Intervention is in the public interest; and 

(5) Intervention will not prejudice the rights 
of parties. 

(c) Form of Petition. A petition to intervene 
shall contain the name of the petitioner, the title 
of the hearing, the date and time of the hearing, 
if known, and the grounds for intervention. The 
petition for intervention shall be addressed to all 
parties affected thereby and to the Division at its 
mailing address. 

(d) Notice of Intervention. If the Administra- 
tor allows intervention, notice of that decision 
shall be issued promptly to all parties and to the 
petitioner. Notification will include a statement 
of any limitation of time, subject matter, evi- 
dence, or other limitations imposed on the 
intervenor. If the Administrator's decision is to 
deny intervention, the petitioner wiU be notified 
promptly. 

Statutory Authority G.S. IA-1; I50B-3S. 

.0406 DEPOSITIONS 

The use of depositions may be allowed only 
when attendance at a hearing would work a 
hardship on a person otherwise available to be 
subpoenaed as a witness, and such hardship is so 
great as to be unreasonable in light of the testi- 
mony that person may be expected to give. In 
such a case, a deposition will be taken in ac- 
cordance with the North Carolina Rules of Civil 
Procedure. ^\11 necessary rulings as to whether a 
deposition will be allowed or as to methods of 
securing a deposition are within the power and 
discretion of the hearing officer. 

Statutory Authority G.S. lA-l: 1508-28. 

.0407 SLBPOENAS 

(a) I learing Officer May Issue Subpoena. Any 
hearing officer may issue subpoenas in the name 
of the Administrator. 

(b) Request for Subpoena. Subpoenas requir- 
ing the attendance of witnesses, or the production 
of documents, evidence or things will be issued 
promptly by a hearing officer after receipt of a 
written request from a party to a contested case 
for such subpoena. 

Statuioty Authority G.S. I50B-3S: 150B-39. 

.0408 SERVICE OFSLBl'OENAS 

(a) Methods of Service. Subpoenas shall be 
served as the officer issuing the subpoena shall 
direct. Subpoenas may be directed to be served 
by any of the following methods: 



1174 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



(1) by an employee of the Division; or 

(2) by the sheriff of the county in which the 
person subpoenaed resides, when the 
party requesting such subpoena pre-pays 
the sheriiT's service fee. 

(b) Form of Subpoena. Subpoenas will be is- 
sued in duplicate with a "Return of Service" form 
attached to each copy. The person serving the 
subpoena shall fill out the "Return of Service" 
form for each copy and promptly return one 
copy of the subpoena, with the attached "Return 
of Service" form completed. 

Statutory Authority G.S. J50B-3S; J50B-39. 

.0409 OB.IhXTlON TO A SLBl^OENA 

(a) Form of Objection. Except as may be 
otherwise stated in a particular subpoena, a party 
or person receiving a subpoena from the Division 
may object thereto by filing a written objection 
to the subpoena with the Division at its mailing 
address. An objection to a subpoena must in- 
clude a concise but complete statement of rea- 
sons why the subpoena should be revoked or 
modified. These reasons may include any reason 
in law for holding the subpoena invalid. 

(b) Service of Objection. The objection shall 
be served upon the Administrator and the party 
who requested the subpoena. Service shall be in 
accordance with the North Carolina Rules of 
Civil Procedure. 

(c) Response to Objection. The party re- 
questing the subpoena may file a written re- 
sponse to the objection. The response shall be 
served in like manner as the objection. 

(d) I learing on Subpoena. After receipt of the 
objection and response thereto, the hearing offi- 
cer may issue a notice to the party who requested 
the subpoena and the party challenging the 
subpoena, and may notify all other parties of a 
hearing, to be scheduled as soon as practicable, 
at which time e\'idence and testimony regarding 
the objection and response may be presented. 

Statutory Authority G.S. I50B-3S: 150B-40. 

SLBCIIAPTKR 16B - SA\ INGS INSTITUTIONS 
COMMISSION 

.0001 OITTCERS 

At the first meeting of each fiscal year, the 
Sa\ingr . r«4 Loan Commission shall elect one of 
its members to ser\'e as chainnan and one of its 
members to serve as vice-chairman. The chair- 
man shall designate a staff member of the Sas-ingo 
aft4 loan Division to serve as secretary. If a 
meeting of the Commission is called and the 
chairman aft4 or vice-chairman cannot attend. 



the members of the Commission may elect one 
of their membership to preside over the meeting. 

Statutory Authority G.S. 543-53; 54B-55. 

.0002 MEETINGS 

(a) Regular Meetings. The Savings aft4 Loan 
Commission shall hold regular meetings in 
Raleigh every second Thursday in the second 
month of each quarter, wrib the moutingn being 
hei4 m tfee montho &f February, May, Auguut 
afi4 No' i ^ombor. By a majority vote of the 
Commission, the date and location of a regular 
meeting may be changed. 

(b) Special Meetings. Special meetings of the 
Commission may be called as needed by the 
chairman, three members of the Commission, or 
the Administrator, provided actual notice of each 
meeting is given to every member of the Com- 
mission prior to the date of the meeting. 

(c) Quorum. A quorum shall consist of four 
members of the Commission. 

(d) Voting. The vote of a majority of those 
members of the Commission present and voting 
shall be sufficient to decide any matter before the 
Commission, provided a quorum is present. A 
member of the Commission shaO not vote on 
any matter in which he has a personal or fman- 
cial interest. 

Statutory Authority G.S. 54B-53; 54B-55. 

SUBCHAPTER I6C - API'LIC.VTIONS 

SECTION .0100 - CHARTER APPLICATION 

.0101 FOR.MS 

(a) Application for a mutual association is ac- 
complished througli the execution of Form .MC. 

(b) Application for a stock association is ac- 
complished through the execution of Form SC. 

(c) Forms MC and SC incorporate all statutory 
requirements and criteria and provide for the 
submission of required information. These 
forms can be obtained from and filed with the 
Savings a«4 L-eaw Division, I^tOt Bwr M 37'XI5, 
Ral e igli, North Carolina 2761 1. at its mailing 
address. 

Statutory Authority G.S. 54B-9; 54B-55. 

SECTION .0200 - BRANCH OFFICE 
APPLIC.VTION 

.0201 FORM 

Application for a branch office of » mutual as- 
sociation Bf a stock an association is accom- 
plished through the execution of Form AB. 
Form AB incorporates all statutory requirements 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1175 



PROPOSED RULES 



and criteria and provides for the submission of 
required information. The form can be obtained 
from and filed with the Savings afi4 Loan Divi- 
sion, -PtO. e^ M 37915, RalLMgh, N€K4fe 
Carolina 376 1 1 . at its mailing address. 

Slatutoiy Authority G.S. 54B-22: 54B-55. 

SECTION .0300 - .APPLICATION TO CHANGE 

LOCATION OF BRANCH OFFICE OR 

PRINCIPAL OFFICE 

.0304 TEMPORARY CLOSING OF OFFICE 

The Administrator shall be notified if an office 
is closed temporarily for any reason other than 
observance of a holiday. 

Statutory Authority G.S. 54B-55. 

.0305 PLRCII.ASE OF BRANCH 

No association shall purchase a branch office 
without first obtaining the written approval of 
the administration. The association shall furnish 
such uiformation as to the purchase as the Ad- 
ministrator may prescribe. 

Statutory Authority G.S. 54B-22: 54B-55. 

SECTION .0400 - REMOTE SERVICE UNITS 

.0401 DEFINITIONS 

As used in this Section, unless the context oth- 
erwise requires, the term: 

(1) "Generic data" means statistical informa- 
tion which does not identify any indi\idual 
account holder. 

(3) "Personal security identifier" means any 
word, number, or other security identifier 
essential for an account holder to gain access 
to an account through use of an unmaimed 
remote service unit. 

(3) "Remote service unit" means a customer 
communications terminal, point-of-sale ter- 
minal, automated teller machine, cash-dis- 
pensing machine, automated or other direct 
or or remote infonnation processing device 
or machine, whether manned or unmanned, 
through or by means of which funds or in- 
formation relating to any financial service 
or transaction rendered to the public is 
stored and transmitted, instantaneously or 
otherwise to or from an association terminal 
or terminals controlled or used by or with 
other parties. 

(4^ "Rjmotc i. L ' P i ict ' Hfti* account" niLMnc i a 
savingf i »f loan account tfert- ma>' t^ ae- 
CL ' C i f . L ' d tlirouuli t»» &f a r e mote acrS ' icL' unit. 



Statutory Authority G.S. 54B-77. 

.0402 APPLICATION: GLIDELINES FOR 
APPROVAL BY ADMINISTRATOR 

(a) An association may apply to the Adminis- 
trator for permission to establish or use remote 
service units and participate with other parties in 
remote service unit operations, on an unrestricted 
geographic basis. An association may share a 
remote service unit controlled by a third party 
or an institution not subject to examination by 
a State regulatory agency only if such tliird part 
or institution has agreed in writing that the re- 
mote service unit is subject to such examination 
by the Administrator as he deems necessary. 

(b) Application for a remote service unit is ac- 
complished through the execution of I'orm RSU. 
Form RSU incorporates all regulatory require- 
ments and guidelines for the estabUshment of a 
remote service unit and provides for the sub- 
mission of required information. This form can 
be obtained from and tiled with the Sa' . ingr . aft4 
teaft Division, ¥. O. 8»* W 37015, Rali ' igh. 
North Carolina 3761 1. at its mailing address. 

(c) The Administrator shall consider the fol- 
lowing guidelines when reviewing an application 
to establish a remote service unit: 

(1) The policies, financial condition, and op- 
eration of the applicant afford no basis for 
supervisory objection. 

(3) The proposed remote service unit wdl be 
established within six months of approval; 
provided, for good cause shown, the Ad- 
ministrator, upon written apphcation 
from the association may grant the asso- 
ciation a six-month extension within 
which to establish the remote service unit. 

Statutoty Authority G.S. 54B-77. 

.0403 GENERAL POLICIES 

fa) j\pplicability »f Rogulation &t Trano 

CTtrTTTTTTTT rTTrtrtt? Lil H-ICI t tllf rTrTTTTTTTT til L.' ''tlT M\_^"l \,\J H l\- 

Moctronic P«ft4 TraivifL-r A^ f+4 r.S.C. Wi^ 
et- L i oq.) aftti I ' loaulalion 1-^ t4 (+h* I'L ' dL'ral RL '-. L ' n e 
ftwtf4(4a C.I ' .R. 305.3). 

(a) (4=4 Prohibited uses. A remote service unit 
shall not be used to open savings accounts or 
establish loan accounts. 

(b) fe) Service charges. An association may 
impose service charges for remote service unit fi- 
nancial services. 

(c) (4) Bonding. Ait association shall take all 
steps necessary to protect its interest in financial 
services processed at each remote service unit, 
including obtaining available fidelity, forgcn,-, and 
other appropriate insurance. 



1176 



4:24 NORTH CAROLlN.i REGISTER March 15, 1990 



PROPOSED RULES 



(d) («^ Security. An association shall protect 
electronic data against fraudulent alterations or 
disclosure. 

Statutory Authority G.S. 54B-77. 

SECTION .0500 - INTERSTATE RECIPROCAL 
ACQUISITIONS 

.0501 FORM 

Application for approval to acquire a North 
Carolina association is accomplished through the 
execution of Form AQ. The form can be ob- 
tained from and must be filed with the Savings 
aft4 ;-Brtft Division, Ur ©. U^ M 27015, Raloigh, 
North Carolina 3761 1. at its mailing address. 

Statutory Authority G.S. 54B-48.6: 54B-55. 

.0503 FEES 

(a) The acquisition application fee is the same 
as for a savings and loan holding company ap- 
plication. 

(b) The administration fee for an association 
acquired by a Southern region savings and loan 
association or holding company shall be the same 
as the supervisory fee for a North Carolina asso- 
ciation of similar asset size. 

(c) The Southern region savings and loan as- 
sociation or holding company that has acquired 
an association shaU pay the same super\isory fee 
as a North CaroUna holding company. 

(d) If comparable fees in the home state of the 
parent association or holding compan\' are higher 
than the applicable North Carolina fee, then the 
higher fee shall be applicable. 

Statutory Authority G.S. 54B-4S.6: 34B-55. 

SUBCHAPTER 16D - OPERATION OF SAMNGS 
ASSOCI.VnONS 

SECTION .0100 - DIRECTORS: OFFICERS AND 
EMPLOYEES 

.0101 COMPOSITION OF BOARD OF 
DIRECTORS 

(a) The number of directors constituting the 
initial board of directors shall be not less than 
seven. Thereafter, the provisions of Chapter 55 
of the General Statutes shaU govern the numer- 
ical composition of boards of directors for both 
stock and mutual associations. Other guidelines 
for the composition of a board of directors are 
as follows: 

(1) No more than one-third of the bo;ird of 
directors shaU be salaried officers or em- 
ployees of the association, or of any sub- 
sidiary or (except in the case of an 



association having 80 percent or more of 
any class of voting shares owned by a 
holding company or controlling person) 
any holding company or controlling per- 
son affiliate thereof. 

(2) No more than two directors shall be 
members of the same immediate family. 

(3) No two directors who are attorneys may 
be members of the same law fum. 

(4) No more than one-third of the board of 
directors shall be directors, officers or 
employees of a competing fmancial insti- 
tution. 

(5) The chief executive officer of the associ- 
ation shall be a member of the board of 
directors. 



(^ t 



u i i ' e p ooiaticm shall b» » comphanoo 

tTTTTT I 11 1 U. wj LI 1 .' 1 1 ^TTT L.'l 1 1 1 1 ^> 1 V LI 1 1 CTT Kit." Ill ..I L CrTTTTTTtTT 

me e ting »f th«» a ji-. Hciation h*44 after the e ff e cti' ie 
date e4^ frhi* Rule. 

(b) fe^ A director shall not vote on any matter 
in which he has a personal or fmancial interest. 

(c) fd^ \Vlien an association takes action result- 
ing in the establishment of a new chief executive 
officer or director, the association shall notify the 
Administrator in writing of such change, and 
shall provide the name of the new chief executive 
officer or director, the effective date of the ap- 
pointment, and a statement of the person's past 
and current business and professional affiliations. 
The name of any departing chief executive officer 
or director shall also be provided. 

Statutory Authority G.S. 54B-55. 

.0102 PROHIBITED TRANSACTIONS 
(REPEALED) 

Statutor}! Authority G.S. 54B-55. 

.0104 INSIDER LOAN LIMIT.VIIONS 
(REPEALED) 

Statutory Authority G.S. 54B-I54. 

SECTION .0200 - PROXIES 

.0202 FORM OF PRO.XY 

(a) Every form of proxy solicited by an associ- 
ation shall conform to the following require- 
ments: 

(1) The proxy shall be revocable at will, with 
the pov\er to revoke not being condi- 
tioned on any event or occurrence or 
otherwise limited; however, a proxy may 
be made irrevocable to the extent permit- 
ted by the applicable provisions of G.S. 
55-68 and only when the proxy clearly 
indicates that it is to be irrevocable. 



4:24 NORTH CAROLINA REGISTER March 15. 1990 



1177 



PROPOSED RULES 



(2) The proxy shall be clearly labeled "Revo- 
cable Proxy" in at least 18-point, boldface 
type. 

(3) The proxy shall not be part of any other 
document or instrument. Provided, 
however, that th» a carbex signature card 
(a two-part form consisting of a signature 
card and proxy card) si Ae Unit e d States 
LoaguQ ei Sa' ^ ingo Asi i ociations is specif- 
ically permitted. The account holder 
must sign both the signature card and the 
proxy card in order to validate them. 

(b) The proxy may include provisions permit- 
ting both permanent revocation and revocation 
of the proxy as to any particular meeting or 
meetings, and a provision that the proxy wUl re- 
main valid until "cancelled by a writing delivered 
to the secretary of the association". 

Statutory Authority G.S. 54B-55; 54B-I05. 

SECTION .0300 - RECORDS 

.0301 GENER.VL POLICIES 

(a) Records to be Kept at Principal Office. 
Every association shall keep at the principal of- 
fice correct and complete books of account and 
minutes of the proceedings of members, share- 
holders, directors and committees. Complete 
records of all business transacted at the principal 
office shall be maintained at the principal oflice. 
Everything relating to the business of an associ- 
ation shall be examined and investigated by the 
Administrator on a regular and periodic basis. 
Every association and service corporation thereof 
shall be audited at least once in each calendar 
year by independent auditors. The audit shall 
be done on the basis of generaUy accepted ac- 
counting principles, unless otherwise provided by 
this Chapter. The association shall file with the 
Administrator tvr» copit' - j one copy of the audit 
report along with one copy of the auditor's 
management letter and any other letters regarding 
the audit within 9U days after the end of its fiscal 
year, unless extended in writing by the Adminis- . 
trator. The association shall also submit to the 
Administrator a copy of the association's written 
response to the auditor's management letter at 
the time such response is provided to the appro- 
priate federal regulator\' authority. 

Statutoiy Authority G.S. 54B-2I: 54B-55. 

SECTION .0400 - LO.\NS 

.0403 RECORDS ^VITII RESPECT TO LO.VNS 

(a) .Mortgage Loans. Each association shall 
maintain records with respect to each loan on the 
security of real estate \\hich shall include: 



(1) An application signed by the borrower 
or his agent, containing adequate infor- 
mation which shall include the purpose 
of the loan, the identity of the property 
or properties securing the loan, and the 
purchase price of the property paid by or 
agreed to be paid by the applicant where 
the purpose of the loan is for the purchase 
of the real estate securing such loan; 

(2) The credit abiUty of the applicant shall 
be ascertained in the application or by a 
credit report, a fmancial report or by oth- 
ers at the request of the association; 

(3) A written appraisal report conforming to 
the written appraisal policy of the associ- 
ation, signed and dated prior to the ap- 
proval of the application; 

(4) Evidence to show: 

(A) proper approval of the loan and the 
terms and conditions of such approval; 

(B) a loan settlement statement, signed by 
the borrower, showing the distribution of 
the loan proceeds; 

(C) the association's approved attorney's 
title opinion or a valid title insurance pol- 
icy from a title insurance company au- 
thorized to do business in North Carolina; 

(D) hazard insurance coverage; 

(E) release or releases of any portion of the 
collateral, with a revised appraisal of the 
remaining security retained; and 

(F) the loan agreement, inspection reports, 
owner's and contractor's affidavits and 
other necessary procedures on con- 
struction loans, where applicable; 

(5) All loan modifications, properly recorded 
in the minutes; 

(6) Record of insurance expirations unless a 
master mortgagee insurance policy is held 
in full force and effect; 

(7) Tax records; 

(8) A mortgage loan register to show; 

(A) account number; 

(B) borrower's name; 

(C) date of deed of trust; 

(D) appraisal; 

(E) interest rate; 

(E) monthly payment and date of first 
payment; 

(G) purpose of the loan and purchase price 
if for purchase of property securing the 
loan and the contract price if for purposes 
of construction; and 

(H) hypothecation, if any, designating hy- 
pothecator, amount, and t}pe of pledge 
collateral; aU to be incorporated in the 
hypothecation agreement; 



I17S 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



(9) Records on acquisition of mortgaged se- 
curity to include: 

(A) a detailed record of the acquisition, 
whether through foreclosure or otherwise, 
and a description of the property or pro- 
perties including the name of the former 
owner; 

(B) maintenance of subsidiary ledger cards 
accounts for each separate acquisition, to 
record all items subject to capitalization 
or to income and expense during the pe- 
riod such property is owned by the asso- 
ciation; 

(C) designation of all fees, charges and 
commissions and to whom such were 
paid; 

(D) a copy of the trustee's report relating 
to foreclosure, when applicable; 

(4-0) A !: . p e cLfio r e' ; .e n e ift aft amount riufflcient 
to cov e r uncollijott ' d capitaliF.L'd mortgago 
loan intorost a* proocribod ift Rul e .Q ' lQS 
ef tfeis Subchapter; 

(10) (-14) A review of 60 days or over delin- 
quent mortgage loans by the association's 
board of directors or executive committee 
at least once a month and such review to 
be recorded in the minutes of the board 
of directors or executive conunittee meet- 
ing; and 

(1 1) (43) A "loans in process account" to 
support the undisbursed portion of the 
proceeds of each mortgage loan or unse- 
cured construction loans. 

(b) Withdrawable Account Loans. Each as- 
sociation shall maintain records with respect to 
each loan secured by withdrawable accounts 
which shall include a withdrawable account loan 
register. Such loan register or registers shall in- 
clude: 

(1) account number, 

(2) borrower's name, 

(3) date of loan, 

(4) interest rate, 

(5) payment schedule, and 

(6) date of frrst payment. 

(c) Other Loan Register. Each association 
shall maintain adequate and appropriate records 
with respect to all other tvpes of loans made by 
the association which shall include a loan regis- 
ter. Separate registers shall be maintained with 
respect to consumer loans and with respect to 
commercial loans. Such loan register or registers 
shall include: 

(1) account number, 

(2) borrower's name, 

(3) date of lo;m, 

(4) interest rate, 

(5) payment schedule. 



(6) date of frrst payment, aft4 

(7) purpose of loan, tf applicablo. and 

(8) type of collateral, if secured. 

Statutory Authority G.S. 54B-55. 

.0404 ALTERNATIVE \IORTGAGE 
INSTRUMENTS 

(a) An association may use any alternative 
mortgage instrument agreed upon by the associ- 
ation and the borrower. The term "alternative 
mortgage instrument" shall include any type of 
mortgage instrument other thiin a conventional 
mortgage instrument with a fixed interest rate 
and fixed payments. An association is deemed 
to have complied with this Rule if it complies 
with similar requirements enforced by the federal 
inr . uror »f acoounto. regulatory authority. Para- 
graphs (b) and (c) of this Rule apply only to 
credit transactions where the borrower is a na- 
tural person and the intended use of the loan 
proceeds is for personal, family, or household 
purposes. 

(b) An association using an alternative mort- 
gage instrument shaU maintain in the mortgage 
loan fde a certification signed by the borrower 
indicating that the borrower has received the dis- 
closure material specified in Paragraph (c) of this 
Rule before closing the loan. 

(c) Prior to closing, the borrower shaU be fur- 
nished disclosure material which shall include: 

(1) an explanation of the alternative mortgage 
instrument; and 

(2) an example of the operation of the alter- 
native mortgage instrument. 

(d) The borrower shall not be charged any 
costs or fees in connection with regularly sched- 
uled adjustments to the interest rate, the pay- 
ment, the outstanding principal loan balance, or 
the loan term. 

Statutory Authority G.S. 548-55; 54B-I63. 

.0405 UNSECURED LOANS LIMIT 

The aggregate amount of unsecured loans out- 
standing which may be made by an association 
to any one borrower shall not exceed the loi . r i or 
64 Ot3# percent »f ti«* acsociation's asset ji ef five 
percent &f ite Het- worth; provided, tfert aft asso 
ciiition may, ift afty esont. malc e Hf> t«- three 
thousand dollars (S3, 000) » uu '. ecured loans t» 
aft¥ »fte borro' i ver. amount established by the 
appropriate federal regulatory authority. 

Statutory Authority G.S. 54B-55: 54B-I5/. 

.0406 ACCOUNTING FOR GAINS AND 
LOSSES (REPEALED) 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1179 



PROPOSED RULES 



Statutory Authority G.S. 54B-55. 

.0407 LOANS TO ONE BOKROWKR 

(a} Upon a written determination by the Ad- 
ministrator that an association is operating with 
unsafe and unsound lending practices, the Ad- 
ministrator may establish such limits on loans to 
any one borrower that he deems appropriate to 
protect the public. At no time shall the aggregate 
amount of loans of any type outstanding, granted 
by an association to any one borrower, exceed 
the lesser of the amount established by G.S. 
54B- 1 64 or bv the federal regulator^' authority. 
fb^ 4-H>f puipor .e s ef applying t+w limitationn s«*t- 
forth i» Paragraph fa^ »f (44* Rulo, wft¥ loan te- 
a person e* entity tfett- i*7 »f upon the making »f 
the locm VrtU b e com e , etpt obligor bh- the loan v4H- 
be attributed r4*^ ter 

(44 ncMuinuL'L' ' ef such obligor; 

rttt pL ' r -. onLi, trusts, syndicutos, pailn e rships, 
ftft4 corporations ef ' ■ vhich such obligor » 
» nominee, » benoficiar. , a mombor, a 
general partner, a limited partner ov . ning 
aft int e r e st »f +4) percent t+f more (based 
»» the value ef hi^ contribution), of a re- 
cord »f beneficial stockholder owning 44 
perc e nt ef more »f the capital stock; 
if such obligor is a trust, s'l ndicato, part 



^ 



Pi 



W 



ner '. hip. »f corporation, all- tnists, syndi 
cat e s, partnerships ^ , nf^i corporation 
' ■ vhich aftv b e n e l^'iar 



»f 
memb e r, general 

I ^ VT T [ It I ~ CTTT IIUVI I. ^'l 



partner, limited part 
e4 444 p e rc e nt Bf more, Bf record ef bene 
ficiiil stockhold e r owning teft percent »f 
mor e of the capital stock, is alse- a benel'i 
ciLii y. memb e r, general partner, limited 
partner owning aft inter e st e4 -W perc e nt 
ef mor e &f the capital stock »f such obli 

notv i ith' i tanding the foregoing, loan '. t» 
partn e rships i» which the service corpc^ 
ration sf the lending a -.'i ociation is a part 
ftef w4H' ftot be aggjregated against the 
sen ice coqioration unles '. the security f»f 
efte h4 the loans , is alst+ secunty fe* aft- 
olher loan tn- the serv ice coqioration. evf 
te- a partnership »f ^vhich the servic e e€H^ 
poration is a partner, m which ease those 
loans having common ;.e curil;i w4Hr be a§- 
gregated agains.t the s ^ ervic e corporation; 
prti' i ided. that the as ' iociation nfhi s e rvice 
corporation maintain books aft4 records 
ift a» ;idequate manner te- exidence th^ 
each partn e rship is financially independ 
efttr without aft¥ commingling ftf funds. 
Bf- di\ ersion ef funds from eae partnership 
te- another. 



(^ ft*f the purpos e s ef this Section the term 
"total balanc e s ef aii outstanding loans" m e ans 
the original amounts loaned by- aft association 

T-^ I 1 * f ■"»«-><? ^^^^^^^lt^^-AT^'^l • t ^1 \ ■ 'i t-\ ,-■ f-\f ' i n / 1 ■ »^ i i-i j-n .-4 ^1 i i .-■. --i r\ ri 
I '1 1_1L> U.I IT tTTmTTTTTTTTTT HU T (J.1 iVl_' J Ul ITT rTTTCTCTTT U Lll_' LIL IVf 

unpaid, less repayments aft4 participating inter 
ests &el4 aft4 e.xclusivo ef afty loan eft the security 
ef such association's savings accounts e* feai es- 
tate the title te- w - hich has boon conv e yed te a 
bona 64e purchaser whe- assumes the loan. 

Statutory Authority G.S. 54B-55; 54B-I64. 

.0408 ACCOUNTING FOR UNCOLLECTIBLE 
INCOME (REPEALED) 

Statutory Authority G.S. 54B-55. 

SECTION .0500 - WH HDRAVVABLE 
ACCOUNTS 

.0503 NONNEGOTIABLE ORDERS OF 
WITHDRAWAL (REPEALED) 

Statutory Authority G.S. 54B-55; 54B-I2S. 

.0505 NON-INTEREST-BEARING 
NEGOTIABLE ORDER OF 
WnilDKAWAL ACCTS (REPEALED) 

Statutory Authority G.S. 54B-55; 54B-I27. 

SECTION .0600 - LIQUIDITY FUND 
(REPEALED) 

.0601 LIQUIDITY FUND REQUIREMENT 
.0602 AMOUNT OF LIQUIDITY FUND 

Statutory Authority G.S. 54B-55; 54B-2/0; 54B- 
211. 

SECTION .0800 - TRUST POWERS 

.0806 AUDIT OF TRUST DEPARTMENT 

At least once during each calendar year, the as- 
sociation's trust department shall be audited by 
independent auditors, ift a manner prescribed 
by the Admini -. tiator. A copy of the report of 
the audit shall be promptly filed with the Ad- 
ministrator. 

Statutory Authority G.S. 54B-77. 

.0807 FUNDS .\\\ Al IINti IN\ FSIMEN 1 OR 
DISIRIBl HON 

(a) Funds held in a fiduciary' capacity by an 
association awaiting investment or distribution 
shall not be held uninvested or undistributed any 
longer that is reasonable for the proper manage- 
ment of the account. 



11 SO 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



(b) Funds held in trust by an association, in- 
cluding managing agency accounts, awaiting in- 
vestment or distribution may, unless prohibited 
by the instrument creating the trust, be deposited 
in other departments of the association, provided 
the association shall first set aside under control 
of the trust department collateral security of a 
kind and in an amount as specified in G.S. 
36A-63(b) for funds held in trust by a bank, ex- 
cept that no such collater;U shall be required to 
the extent that such funds are insured by Ae 

I V-^Jl. I HI L '11 Till i,ll CTTTCT I .\ 'HI I 1 1 1 ^1 U I T.1I ll.^J ^^^T.7 1 I ' U 1 U I i\J 1 1 

ef » mutual depo^iit guaranty aj i sociution, et thoir 
Guccasr . orr i . an agency of the I'nited States gov- 
emment. 



(c) /Vny funds held by an association as fiduci- 
ary awaiting investment or distribution and de- 
posited Ln other departments of the association 
shall be made productive. 

Statutoty Aiilhority G.S. 54B-77. 



Statutory Authority G.S. 54B-I94. 

.0002 INVKSTMENT LIMITATION 

The aggrogato invootmont by »«• aiisooiation m 
'. en'ico corporationc . shall Het- oxcood teft porcont 

includes Investments in a scr\ace corporation in- 
clude not only stock and other securities of a 
ser\'ice corporation, such as notes, bonds and 
debentures, but also any loans, secured or unse- 
cured, to the service corporation. The teft pet^ 
Geftt- investment limitation established bv G.S. 
54B-194 applies to the total investment that an 
association can make in one or in any number 
of service corporations, except an association 
may make a secured loan to a state-wide multi- 
owned service corporation without affecting its 
ten percent of assets investment. 

Statutorv Authority G.S. 54B-55: 54B-I94. 



SECTION .0900 - INVESTMENTS 

.0901 SECl RITIES 

An association may invest in any security that 
has been rated at least BAA or equivalent by a 
nationally recognized rating senice. In no case 
may investments in YiAA or equivalent securities 
exceed in the aggregate twenty five percent of net 
worth without the express written permission of 
the Admuiistrator. 

Statutoty Authority G.S. 548-55; 54 B- 1 93. 

.0902 STOCK IN OTHER .ASSOCIATIONS 

(a) No association shall invest in the stock of 
another association without giving prior written 
notice to the Administrator. 

(b) No association shall invest in the aggregate 
more than five percent of its net worth in the 
stock of other associations without the prior 
written approval of the Administrator. 

Statutory Authority G.S. 54B-55; 54B-/93. 

SL'HCIIAPI KR U)F - SERVICE CORPORATIONS 
AND FINANCE SI USII)I,\RIES 

.0001 PERMITTED ACTIVITIES 

The service corporation of an association may 
engage Ln those activities which are approved by 
the federal insurur ef accounlo regulalon' au- 
thority for scn."ice corporations owned solely by 
federal savings w+4 lettft associations \\ hich have 
principal offices in this State, and any investment 
authorized for state-chartered savings ftfi4 kK» 
associations and approved in advance in writing 
by the Administrator. 



.0004 S lOCK IN A SERVICE CORPORATION 
(REPEALED) 

Statutory Authority G.S. 54B-55; 54B-I94. 

.0005 AMENDMENTS TO AR1 ICLES OF 
INCORPORVriON OR KVLAVVS 

(a) Prior to filing with the Secretary of State 
of North Carolina, a ser\'ice corporation shall ft«4- 
amend file with the Administrator copies of any 
proposed amendment to its articles of incorpo- 
ration. »f bylaws until Ae proposed amend 
ments ha' < e been a|iprcn ed by tbe ;\dniini^ ' trator. 
-ft* i\dministratnr shall be doL'mod to- have »f>- 
proed awy such am e iulments to sv hich be bft* 
Het- objected within :34 days alter the date »» 
>vliich tbe amendments afe filed. The Adminis- 
trator must gi\e his appro\^al to tjic fonn and 
content of such proposed amendment. 

(b) Before the livlaws or any amendments to 
the bylaws of a senice corporation can become 
effective, a certified cop\" ot' the b\ laws or 
amendments shall he filed with and approved by 
the .Vdministrator. In the e\ ent of the failure of 
the Administrator to act upon the b\iaws or 
amendment within 25 davs ot receipt, the bvlaws 
or amendment shall be deemed approved. 

Statutoiy Authority G.S. 54B-55: 54B-I94. 
SLBCII.M'IER 16II - SI PERMSORV ACHONS 

.0001 DEFINITIONS 

As used in this Subchapter, unless the context 
othenyise requires, the teim: 
(I) "Association" means all sa' i ings t+H4 loan 
associations convertinsi. mersing or consol- 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



llSl 



PROPOSED RULES 



idating pursuant to G.S. 54B-44 and this 
Subchapter. 

(2) "Consolidation" means a supervisory con- 
solidation pursuant to G.S. 54B-44 and this 
Subchapter. 

(3) "Merger" means a supervisory merger pur- 
suant to G.S. 54B-44 and this Subchapter. 

(4) "Plan of conversion" means a detailed 
outUne of the terms, conditions and proce- 
dure of the short form conversion of an as- 
sociation from mutual to stock form of 
ownership. 

(5) "Plan of merger" or "plan of 
consolidation" means a detailed outline of 
the terms, conditions and procedure of 
combining one association, by merger or 
consolidation, with another association. 

(6) "Short form conversion" means a supervi- 
sory conversion of an association from mu- 
tual to stock form of ownership, pursuant 
to G.S. 54B-44 and this Subchapter. 

(7) "Combmation merger and conversion" 
mean a supervisory conversion of an associ- 
ation from mutual to stock form of owner- 
ship combined with a supervisory merger, 
pursuant to G.S. 54B-44 and this Subchap- 
ter. 

(8) "Plan of combination merger and conver- 
sion" means a detailed outline of the terms, 
conditions and procedures of the short fonn 
conversion of an association from mutual to 
stock form of ownership and combining the 
association, by merger, with another associ- 
ation. 

Statutory Authority G.S. S4B-44. 

.0007 t.iQi in.vnoN account 

The Administrator may require that a plan of 
conversion, merger, consolidation or any other 
action provide for a liquidation account for the 
benefit of the withdrawable account holders of a 
converting mutual association or a mutual asso- . 
elation which will not be the surviving associ- 
ation pursuant to a merger or consolidation or 
any either action, 4-h** L" . tabli '. hmL ' iit (-4' - . . uch li- 
quidution account t(«4 t+H^ nght ' j b4 v . ithdrawablo 
iiccdunt hold e r ' j pur -. uant thoroto, t ihuli be a* s«4 
i^>f^ wt ■R*4t» .03(15 t4" Subchapt e r G f4" t44^ 
ClKL[^tor, vr+A- ^ . uch allc ' idliona wtr tht* Admini ' j 
tratcir i . hall dc ' cm appropnatu. 

Stalutoiy .iuthority G.S. 54B-44. 

SlBCll.VI'n R 161 - .ACQl ISI I ION OK 
COMROL 

SFX HON .0700 - GENER.VL 



.0701 GENERAL (REPEALED) 

Statutory Authority G.S. 54B-55; 54B-26I: 54B- 
262. 

.0702 DEFINITIONS AND OTHER TERMS 

(a^ As used in this Subchapter, unless the con- 
text otherwise requires, the term: 

( 1) "Acquisition" means a transaction in which 
a person or savings and loan holding com- 
pany acquires control of a stock association 
by means of an exchange of its capital stock 
for the capital stock of the stock association, 
or by means of a purchase of the capital 
stock of the stock association. 

(2) "Applicant" means a person or savings and 
loan holding company which has fded with 
the Administrator any appUcation under this 
Subchapter. 

(3) "Control" means the power, directly or in- 
directly, to direct the management or poli- 
cies of an association or to vote 25 percent 
or more of any class of voting securities for 
an association. 

(4) "Person" means an individual or group of 
individuals acting in concert, a corporation, 
tmst, joint venture, pool, syndicate, sole 
proprietorship, unincorporated organization, 
or any other form of entity not specifically 
listed in this Subdi\ision. 

(5) "Plan of Conversion" means a plan duly 
adopted m accordance \^ ilh the requirements 
of Cj.S. 54B-261 and this Subchapter that, 
to the satisfaction of the Administrator, sets 
out all relevant terms and ctmditions per- 
taining to a mutual asscKJaticMi's reorganiza- 
tion of its ownership to provide for 
ownership bv a savings and loan holding 
company. 

(6) (-S.). "Plan of Reorganization" means a plan 
duly adopted in accordance with the re- 
quirements of G.S. 54B-261 and this Sub- 
chapter that, to the satisfaction of the 
Administrator, sets out all relevant terms 
and conditions pertaining to a stock associ- 
ation's reorganization of its ov\nership to 
provide for ownersliip h\ a savings and loan 
holding company. 

(7) (-6^ "Registrant" means ;tn\ sa\ ings and loan 
holding company which has filed a registra- 
tion stateinent with the .Xdministrator under 
this Subchapter. 

(8) f?^ "Savings and Loan I loiding Company" 
means any company which directly or indi- 
rectly controls an association ov controls any 
other company which is a savings and loan 
holding company. 



1182 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



\\Jt LTIT/Vn I^TTTTTT^TmrTTTTT^ rTTCTTTTrT HI It ( 

Bf compitny own e d by^ holders »f capital 
stock a«4 organis e d und e r Ae pros'isions »f 
Chaptor -^-tft frf t4*e North Carolina Goncral 
Statut e s fof y»» primaP i purpo ' it? »f pro 
moting thrift i*ft4 homo financing. 
(9) "Tax Free Exchange" means an exchange 
of stock which would result in no tax con- 
sequences to the savings and loan holding 
company, the stock association and its 
stockholders under state or federal law. 
(fe} l.'nlur . o tlw context othorv i ii i u roquiros, 
terms dufmud m Chapter ^44^ trf Ae Noith Ga- 
rolina General Statutes rtftd thi* Chapter, ' ■ ' ■■ hen 
used m t4w* Subchapter, shall hav e *4+e meanings 
gisen m such definitions, te- t4+t» extent s . uch defi 
niticms we fte4- incon ^i istent w i th (-he definitions 
contained m Ats Rule. 

Statutory Authority G.S. 54B-55: 548-26/; 54B- 
262. 

.0703 STAND.\RDS FOR AI'I'KOV.M. OF 

ACQUISITION: DLl IKS AM) COMHCT 

(a) When it- Vs proposed tlittt »«• applicant shall 
control a stock association, Ae Administrator 
shall talre iftte- cons . ideraticm factors additional to 
those eniunerated ift Rul e .070 1 e+ t-hts Sub 
chapter. An association may be controlled by a 
person or a savings and loan holding company. 
The Administrator shall determine that the per- 



son or savings and loan holding company is 
qualified by character, e.\pcnence. and financial 
rcsponsibilit\' to control the association in a legal 
and responsible manner. The Admimstrator 
shall consider the applicant's financial and man- 
agerial resources, and the organizational stmcture 
and future prospects and plans of both the ap- 
plicant and the stock association. 'I'he Adminis- 
trator will consider whether the business and 
activities of the applicant, or its officers and di- 
rectors, or any other person controlling, con- 
trolled by, or associated with the applicant by 
having a common controller, would create a 
material deterioration of confidence in the safety, 
soundness, and financial integrity of the stock 
as.sociation proposed to be controlled. When 
reference is made to tlic word "control" in this 
Rule, the word "control" has the meaning given 
in Rule .0702 of this Subchapter, and addi- 
tionally shall ha\e the meaning given b)' any 
other law or regulation under which the applicant 
is required to report and register as a holding 
company, parent corporation, or other similar 
entity. 

(b) An applicant shall be sohent, and shall 
have a debt-to-equity ratio which compares fa- 



vorably with the ratios of other persons in the 
same line of business. 

(c) The approval of an application to acquire 
control of a stock an association shall in no way 
diminish the authority of the Administrator to 
regulate the activities of the subject controlled 
association. Controlled as . sociations shaU ftet- 
pay dividends without the prior writt e n approval 
&f the i\dministrator, as required by lawr Con 
trolled associations w^ll- continue fr» meet statu 
kwy reserve a«4 fh4 worth requir e m e nts, aft4 w4tt 
continue to meet the requirements ef the agency 
insuring the accounts »f ite d e positors. 

(d) A savings aft4 loan holding comptmy must 
exercise good faith ift it* relationships aft4 trans 
actions with the controlled a!iS(iciation. A con 
trolled association -. hall ftot- enter irte contracts i , 
agreements, l e as e s, e* oth e r busin e ss arrange 
m e nts, wh e ther formal ef informal, with it* 
holding company «w am- other person controlling 
©f controlled by tbe holding company, unless the 
terms afe few wni reasonabl e to the association. 
A controlled association shall not lend to, or in- 
vest in, its holding company or its affiliates, 
without the prior written approval of the Ad- 
ministrator. 

Statutory Authoritv G.S. 54B-4.1- 54B-55; 54B- 
261; 54B-262. 

.0704 INVESTMENT ACTIVriTES OF 
IIOI DINC COMPANIES 

A savings and loan holding company may invest 
only in the stock of one or more stock associ- 
ations, deposits in financial institutions the prin- 
cipal offices of which are located in North 
Carolina, investments permitted by G.S. 54B-181 
through -184, and -187 through -190, and such 
other in\estments approved in ad\ance in writing 
by the Administrator. In no event shall a savings 
and loan holding company make any investment 
not specified by this Section or not permitted for 
an association under the supervision of the Ad- 
ministrator. 

Statutory Authority G.S. 54B-55: 54B-26I; 54B- 
262. 

SKCnON .0800 - ACQ! ISniONS 

.0801 PRIOR W Rin EN APPRO\ AL 

REQl IREI) FOR A( Ql LSI IIONS 

(a) A person or savings and loan holding com- 
pany shall not acquire control of any stock asso- 
ciation without having filed with the 
Administrator an Acquisition Application as 
prescribed by the Administrator, and without the 
written approval of the Administrator after con- 



4:24 NORTH CAROLIN.i REGISTER March 15, 1990 



II S3 



PROPOSED RULES 



sideration of the application and any amend- 
ments thereto. 

(b) In addition to the filing of the Acquisition 
Application, the applicant shall file any other in- 
formation requested by the Administrator, in- 
cluding copies of any filings, documents or 
reports mentioned in Rule .1 105 of this Sub- 
chapter. 

Statutory Authority G.S 548-55; 54B-26I; 54B- 
262. 

.0802 APPLICATION FEES: FILINGS 

j\ny An Acquisition Application proocribod h^ 

1 1 IV I^TTTTTTTTTTrTTTTTTT^T TTTTtrCT^ 1 1 II J V,TTJ t,'T^ I III [.'TV r CTTTT 1 1 1 tt V 

be obtained from the Sus'inuti afni I oun Di\isit)n 
iiest Qffit?t» ttwt M 279l5, ^ Rak ' igh. >r€ 27611. 
at its mailing address. Applications wiii shall be 
accompanied by an apphcation fee in the amount 
prescribed by the fee schedule, adopted by t4+t» 
i\dmini ;. lrator, rt«4 appro' . od by t4te S using - ' . »fi4 
I oan ConimiL i oion. Such fee will be paid by 
check and is non-refundable. Afty filings re- 
c]uirod undor t44^ Subchuptijr eftft i4se- be made 
\\\\\\ tW Saving '. i*ft4 1 oan Divi ' iion at- t+k» »tl- 
dronr . gi^ i on m t4«i Pvulo. Filingr . , applicationr . , 
©f othor cominunicationi i ? . hall be dijL ' niL'd 6ie4 
' . ' ■ hen rocoi' . od »1- t+te uddrei . ^ . i« ^fe Rul e . 

Statuton^ Authority G'.S 54D-55; 543-57; 54B- 
261: 54B-262. 

.0803 CONFIDENTIAL INFORM.VTION 

Should an applicant desire to submit any infor- 
mation it deems to be of a confidential nature 
regarding the answer to any item or a part of an 
exhibit included in an\ application for fding un- 
der this Subchapter, such infomiation pertaining 
to such item or exhibit shall be separatel)' bound 
and labeled "conlidcntial", and a statement shall 
be submitted therewith briefly setting forth the 
grounds on which such information should be 
treated as confidential. Only general reference 
thereto need be made in that portion of the ap- 
plication wliich the applicant deems not to be 
confidential. Applications for filings under tliis 
Subchapter shall be made a\ailable for inspection 
by the public, except for portions vyhich are 
bound and labeled "confidential" and which the 
Administrator determines to withhold from pub- 
lic availability because of their confidential nature 
fw4 i.'?a-L'pt frt+ iifiilion -. ' . vhich ' . vould. tf Hw4e 
pub he. ha' i 'e (-he e ffect ef prematurely commenc 
iftg a procei i fl ' . vhich. by i i tut e e* federal ktw m- 
regulation, commence ', upcm i4^ public di i; clo 
r . ure. -f-be .Xdinini '. trator '. hviU (+h+ permit public 
inspection et copying nf »«y matenal t4wt- hjt m- 



would ber doomed confidential under the pro- 
visions of G.S. 54B-63. 

Statutory Authority G.S 54B-55; 54B-63; 54 B- 
261; 54B-262. 

SECTION .0900 - REORGANIZING STOCK 
ASSOCIATION INIO HOLDING COMPANY 

.0901 REQUIRED ACQUISITION 
APPLICVTION 

WHion it is propof . i ' d A^ A stock association 
shall may be controlled by a savings and loan 
holding company by means of a plan of reor- 
ganization, the savings aft4 loan holding com 
pany shall fi4e This may be accomplished by 
filing with the Administrator one manually 
signed and tw^ one conformed copi e s copy of an 
Accjuisition Apphcation. IIC. For the purpo.ses 
of filing the application, the applicant shall be 
considered a holding company, even thouglr it 
may not yet control a stock association. 

Statutory Authority G.S 54B-55; 54B-26I; 54B- 
262. 

.0902 ACQUISITION PROCEDURE 

4-be iVdministrator shall Het appro\e rtfty en^ 
quiL . ilion unless tbe plan &f reoiganLuition shall 
prtnide tfett- t^ resulting o' . ' . nership shall be 
sested m a > . oilh Carolina corpt^ration. i*H- 
stockholders ef t4*e stock association shall haso 
tbe riglit te- e.'vchange shares, the e.xchiurge e4^ 
stock shall He4- be subject te- state Bf federal m- 
come taxation, stockholders h*+4- ' . ' i ishing to- e^c- 
chango shares shall be entitled te dissent e rs' 
ri gills a*^ pro' . id e d under G.S. 55 113, rt«4 the 
plan ef r e oigani/.ation i* fef ctH4 e(.[uitable k> att 
stockholders. 

(a) I pou determining that an .Acquisition Ap- 
plication IS properh executed and is not mate- 
nallv incomplete, the Administrator shall 
consider the application filed. If the Plan of 
Reorganization is n(it aiiprcned. the .Administra- 
tor shall notilX' the ai'iplicant of such, and stale 
the reasons for its disapprti\al. 1 he .Administra- 
tor may include ad\ice [o the applicant as to 
what may be required by \\a\' of amendment or 
other requirement to cause appro\'al of the Plan 
of l^eorLianization. 

(b) If the .Administrator appro\es the Plan of 
Reorganization, the applicant shall be notified. 
I hereafter, a regular or special meeting of the 
stockholders of the subject association shall be 
called after ad\ance written notice to the stock- 
holders of not less than 20 da\ s specilNing the 
time, place, and purpose for calling of the meet- 
ing. Notice shall be pubUshed in one or more 
newspapers of general circulation in the county 



IIS4 



4:24 NORTH CAROLINA REGISTER Mmch 15, 1990 



PROPOSED RULES 



or counties where the association has its principal 
office and branch otrice(s). The applicant shall 
file publisher's affidavits with the Administrator 
to confirm the publication of notice. 

(c) The results of the stockholder's meeting 
shall be confirmed to the Administrator by filing 
attested minutes of the meeting. If the stock- 
holders approve reorganization of ownership of 
the association to provide for ownership by a 
sa\ings and loan holding compan\', the Admin- 
istrator shall enter his final order approving the 
reorganization. 



(d) 1 he Administrator may waive or alter, for 
good cause, any requirements set forth in this 
Rule. 

Statutory Authority G.S 54B-55; 54B-26I: 54B- 
262. 

.0903 INVKSIMEM ACHVHIES 

(RKI'E.ALKD) 
.0904 NOTICK OF HI. INC: HEARINGS 

(REPEALED) 

Statutory Authority G.S 54B-54: 54B-55: 54B- 
261: 54B-262. 

SECTION .1000 - ACQUISITIONS OF STOCK 
ASSOCI.VriONS 

.1001 REQl IRED ACQUISITION 
AI'PLIC.VnONS 

(t*) A person seeking to acquire control of any 
stock association shall file with the Administrator 
one manually signed and Hve- one conformed 
copiuti copy of an Acquisition Application. GPr 

(4*^ -tft addition t& tiw filing ef 4h* Acqui i. ition 
iVppliccition ir-V^ t+» applicant ■. hail f+k» copio!' i »f 
aftv filinui i , document ', h* r e port ;, mc ' iitioned m 
fr^ . 1 \i)5 trf tte Subchapter. 

Statutoiy Authority G.S. 54D-55. 

.1003 APPROVAL OF ACQUISITION 

(a) Upon determining that an Acquisition Ap- 
plication CP is properly executed and is not ma- 
terially incomplete, the Administrator wiy shall 
consider its approval. If the application is not 
approved, the Administrator will notify the ap- 
plicant of such, and state the reasons for its dis- 
approval. The Administrator may include advice 
to the applicant as to what may be required by 
way of amendment or other requirement, to 
cause appro\'al of the application. 

(b) If the Administrator appro\e5 the applica- 
tion, the applicant shall be notified. Such notice 
shall include an\- requirements or stipulations the 
Administrator may make as conditions of ap- 
pro\'al. 



(c) The Administrator may waive or alter, for 
good cause, any requirements set forth in this 
Rule. 

(4^ I'uniuant t» Ae requir e ments ef G.S. 
5Mi 5.1, tlw commi j. r . io ft FH»y review, approve, 
disapprove, »f modify awy action taken %■ frt*» 
iXdmini '. triitor pursuant te- tfeis Subchapt e r. 

(#) 44m» fiftrii decision »f the commission may 
b» appealed ift aooordanoo with Article 4 ef 
Chapter 1501? of tb» North Carolina Gen e ral 
Statut e s. 

Statutory Authority G.S. 54B-54; 54B-55; 54 B- 
261; 54B-262. 

SECTION .1 100 - REGISTR.M ION: 

SUPERMSION: REPORIS: FILINGS: BOOKS 

AND RECORDS 

.1101 REGISTRATION 

(a) Not later than 10 business days after be- 
coming a savings and loan holding company, 
each savings and loan holding company shaU re- 
^ster with the Administrator by filing a Regis- 
tration Statement. R-Sr filings aft4 other 
communications shiill be consider e d filed vshen 
received bv (4*e Division. 

fbf I'pon receipt »f a regi ' .tration statem e nt, 
t+H» Adminii . trator w+H- assign fr» the registrant » 
holding company numb e r. Such number sh(dl 
be referred to- m the regi 'i trant's subsequent 
communications whh the iXdministrator. 

(b) fe) 1 he Administrator may at any time, 
upon his own motion or otherwise, release a 
holding company from registration, if the Ad- 
ministrator determines that such company or 
person no longer controls a stock association. 

Statutory Authority G.S. 54B-55: 54B-26I: 54B- 
262. 

.1102 SUPERVISION 

(a) Savings a«4 loan holding companies shall 
he sui'> e i'vised hv th<* Administrator. ?4=» Ad- 
ministrator shall exercis e c+W povver '. rt«4 re '. pon 
sibilitie '. with le '. pect to supervi 'i ion. regulation 
rtrt4 exiunination t4" such companies a^ the A4- 
minislrcitor exercises with ro '. pect to as ti ociations, 
a* detailed ift- Cliiipter -^-l-B- h+ the North Carolina 
General Statutes a«4 th« Chapter. Officers, di- 
rectors, and employees of savings and loan hold- 
ing companies have the same duties and 
responsibilities, express or implied, as officers, 
directors, and employees of associations. 

(b) f ach registrant shall be subject to such ex- 
aminations as the Administrator may prescribe. 
The cost of such examinations shall he assessed 
against and paid by such registrant. 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



II S5 



PROPOSED RULES 



Statutory Authority G.S. S4B-55; 54B-57; 54B- 
261: 54B-262. 

.1104 FILING AND APPROVAL: 

AMENDMENTS TO ARTICLES AND 
BYLAWS 

(a) Prior to any filing with the Secretary of State 
of the State of North Carolina, a holding com- 
pany will file with the Administrator copies of 
any proposed amendment to its articles of incor- 
poration. &f bylawT i . The Administrator must 
give his approval to the content and fonn of such 
proposed amendments. t>trt- m Ae ovont »f A« 
failur e »f t4*« Admini ;. trator te- aet- upon A# filing 
witliin 34 duyf i e+' r e c e ipt »f rir tht» amend e d arti- 
ek* &( incoiporation »f bylawr. vAU l*e approved. 

(b) Before any amendments to the bylaws of a 
savinus and loan holdina company can become 
effective, a certified copy of such amendments 
shall be fded with and approved hv the Admin- 
istrator. In the event of the failure of the Ad- 
ministrator to act upon the amendment within 
25 days of receipt, the bvlaws shall be deemed 
approved. 

Statutory Authority G.S. 54B-55; 54B-26I: 54B- 
262. 

.1105 REPORTS 

(a) Each registrant shall file simultaneously 
with the Administrator copies of any filings, do- 
cuments, statements or reports required to be 
fded with the F e d e ral Sasings a«4 I oan Inmr 
anco Coqioration purrauint t©- Section 44^ ©f tl** 
National Mou l ding At* »f rogulation i j proinul 
gated thLML ' under aft4 Ae Socurition aft4 H \chango 
Commiooion pur -. uant k> \^ Securitie ' j I'Kchango 
Aet- &f -^^4 f44 U.S.C. Section ^^9^ e^ %^^ aft4 
tbe Securities b.xchango A^-t- »f 4^i^ (^ L.S.C. 
Section Tht et^ r . eq.) e+ regulation - .i promulgated 
thereunder. Such material v414 be ft}e4 under 
cover ef » General Fonn IIC \. appropriate 
federal regulator.' authority. 

(b) Each registrant shall tile with the Adminis- 
trator such reports or other fdings as the Ad- 
ministrator may prescribe, to be made under oath 
or otherwise, and to be in such fonn and for such 
periods as the Administrator may prescribe. 
Each such report of filing shall contain such in- 
formation concerning the operations of the sav- 
ings and loan holding company, and any related 
persons, as the Administrator may require. 

Statutory Authority G.S. 54B-55; 54B-26I: 54B- 
262. 

.1106 BOOKS AND RECORDS 



In addition to general corporate records main- 
tained in the ordinary course of business as re- 
quired by Section 16D .0300 of this Chapter, 
each registrant shall maintain such books and 
records in such form as may be prescribed by the 
Administrator. The books and records of a 
controlled association or its holding company 
shaO not be removed from this State without the 
prior written approval of the Administrator. 

Statutory Authority G.S. 54B-55; 54B-26I; 54B- 
262. 

SECTION .1200 - CONVERSION OF MLTLIAL 
ASSOCIATION INTO HOLDING COMPANY 

.1201 REQLIRED ACQLTSITION 
APPLICATION 

When it is proposed that a mutual association 
shall convert to a savings and loan holding com- 
pany by means of a plan of conversion, the mu- 
tual association shall file with the Administrator 
one manually signed and one conformed copy 
of an Acquisition Application. 

Statutory Authority G.S. 54B-55; 54B-26J; 54B- 
262. 

.1202 CONVERSION PROCEDURE 

(a) Upon determining that an Acquisition Ap- 
plication is properly executed and is not mate- 
rially incomplete, the Administrator shall 
consider the application fded. If the Plan of 
Conversion is not approved, the Administrator 
shall notify the applicant of such, and state the 
reasons for its disapproval. 'The Administrator 
may include advice to the applicant as to what 
may be required by way of amendment or other 
requirement, to cause approval of the Plan of 
Conversion. 

(b) If the Administrator approves the Plan of 
Conversion, the apphcant shall be notified. 
Thereafter, a regular or special meeting of the 
members of the subject association shall be called 
after advance written notice to the members of 
not less than 20 days specifying the time, place 
and purjriose for calling of the meeting. Notice 
shall be published in one or more newspapers of 
general circulation in the county or counties 
where the association has its principal office and 
branch office(s). The applicant shaU fde pub- 
lisher's affidavits with the Administrator to con- 
firm publication of notice. 

(c) The results of the member's meeting shall 
be confirmed to the Administrator by filing at- 
tested minutes of the mcetmg. If the members 
approve conversion of the association to a mu- 
tual holdmg company, the Administrator shall 
enter his final order approving the conversion. 



//<V6 



4:24 NORTH CAROLINA REGISTER March 15, I99U 



PROPOSED RULES 



(d) The Administrator may waive or alter, for 
good cause, any requirements set forth in this 
Rule. 



(c) The Administrator may waive or alter, for 
good cause, any requirements set forth in this 
Rule. 



Statutory Authority G.S. 548-54; 54B-55; 54B- 
261; 54B-262. 

.1203 PLAN OF CONVERSION 
REQLIRF.MKNTS 

(a) The plan of conversion to a mutual holding 
company shaU require the chartering of a stock 
subsidiary. At least 51 percent of the stock of 
this subsidiary shall be owned by the mutual 
holding company. 

(b) Share of the stock subsidiary may be issued 
to the holding company only after sufTicient as- 
sets to match transferred deposit liabilities are 
transferred by the holding company to the stock 
subsidiary and only after written corLfirmation of 
continuation of insurance of accounts for the 
stock subsidiary is received from the federal in- 
surer of accounts. 

(c) Upon completion of the conversion, the 
mutual association shall become a mutual hold- 
ing company and shall cease to be an association 
or depository institution of any type. 

Statutory Authority G.S. 548-55; 548-262. 

SECTION .1300 - MOLDING COiVIPANY 
ACQLISITIONS 

.1301 REQl IRED ACQUISITION 
APPLICATION 

A person seeking to acquire control of any 
holding company shall file with the Administra- 
tor on manually signed and one conformed copy 
of an Acquisition Application. 

Statutory Authority G.S. 548-55; 548-262. 

.1302 ACQUISITION PROCEDURE 

(a) Upon determining that an Acquisition Ap- 
plication is properly executed and is not mate- 
rially incomplete, the Administrator shall 
consider the application filed. If the application 
is not approved, the Administrator shall notify 
the applicant of such, and state the reasons for its 
disapproval. The Administrator may include 
advice to the applicant as to what may be re- 
quired by way of amendment or other require- 
ment to cause approval of the application. 

(b) If the Administrator appro\es the applica- 
tion, the applicant shall be notified. Such notice 
shall include any requirements or stipulations the 
Administrator may make as conditions of ap- 
proval. 



Statutory Authority G.S. 548-55; 548-262. 

SUBCHAPTER I6.I - MERGER OF STATE AND 
FEDERAL ASSOCIATIONS 

.0001 MERGER OF A STATE ASSOCIATION 
INTO A FEDERAL ASSOCIATION 

The procedure to effect a merger where a state 
association is merged into a federal association 
shall be as follows: 

(1) The state association or associations shaU 
comply with subsections (1), (2), (3) and (4) 
of G.S. 54B-35 relative to the merger agree- 
ment, the special meeting of members or 
stockholders to consider the merger agree- 
ment, the notice requirements of the special 
meeting, the requisite vote for member or 
stockholder approval, and the proper filings 
with the Administrator of the results of the 
special meeting. The notice as required by 
G.S. 54B-35(3) in addition to specifying the 
time, place and purpose for the special 
meeting shall also state that if the merger is 
appro\'ed by the members or stockholders 
and the proper regulatory authorities then 
the surviving association will be a federally 
chartered association subject to federal law 
and h«* niloo rtH4 rogulationi i »f Ae b e deral 
I lomo Loan Danlc Board, regulation. 

(2) The state association or associations in- 
volved shall also comply with any applicable 
provisions of federal law and tlw ruloo i*H4 
rL'gukitiono »f (4*e FudL'ral Hom e Loan Banlc 
Board regulation regarding mergers. 

(3) The federal association or associations in- 
volved shall comply with the provisions of 
federal law and t4te ruloo ftft4 rL ' gulations »f 
tlw Fc'dural Home * Loiin Bank Board reizu- 
lation regarding mergers. 

Statutory Authority G.S. 54B-39. 

.0002 MERGER OF A FEDERAL .\SSOCIATION 
INTO A STA IE .\SSOCL\TION 

The procedure to effect a merger when a federal 
association is merging into a state association 
shall be as follows: 
(1) The federal association or associations in- 
volved shall comply with the provisions of 
federal law and 4» lailoi . rtft4 regulation ' : , ef 
^¥& FodL ' ral I lumLi Loan Bank Board regu- 
lation regarding mergers. I'ro' . idc ' d, how 
ever, ttet- whero a ft ' d e ial a ' j i , ' Ociation » 
mL ' rging Htte a ' jtat e ac . L . ociation t4w aceountL" . 
»f winch a«* Het- inL p ured hf tlw Federal 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1187 



PROPOSED RULES 



Sa' i ^ingG a«4 Loan Incuranco Corporation, 
Subparagraph f^ &f this Rule r . hall apply. 

(2) The state association or associations in- 
volved shaU comply with the provisions of 
G.S. 54B-35 for the merger of state associ- 
ations. 

f3^ Wh e r e a federal association is m e rging iftte 
ar stat e association whos e accounts afe fw^ 
insured hf ti»e F e d e ral Savings aft4 Ijoan 
Insurance Corporation, ti*e fodoral associ 
at ion »f associations invohud shall comply 
with ikvd provisions &f state afi4 federal few 
fof conversion ef federal savings afni loaft 
charters te stat e savings afi4 loan charters 
aft4 fop termination »f Federal Savings aft4 
Loan Insurance Corporation insurance. AU 
associations involved shall comply with th« 
provisions e4^ G.S. 5 IB 35. ^fh« sharehold 
ef* ef the federal association fnay consider 
the charter con' i ersion, t4*e termination »f 
insurance aft4 the merger agreement at a 
singl e special shar e hold e rs meeting. 

Statutory Authority G.S. 54B-39. 

TITLE 10 - DEPARTMENT OF HUMAN 
RESOURCES 

Jyotice is hereby given in accordance with G.S. 
J SOB- 12 that the Child Day Care Commission in- 
tends to amend nde(s) cited as 10 NCAC 3U 
.0102, .0202, .0303, .0401, .0511, .0601 - .0603. 
.0705, .0707, .0712 - .07/3, .1606, .1615, .1701 - 
.1702, .1716 - .1717, .1904, .200S, .2011, .2101. 
.2501 - .2506. .2508 - .2510, .2601 - .2602, .2606 
- .2608, .2611; repeal rule(s) cited as 10 NCAC 
3U .0203; and adopt nde(s) cited as 10 NCAC 
3U .0206, .0604, .2511. 

1 he proposed effective date of this action is Au- 
gust 1, 1990. 

1 he public hearing will be conducted at 1:00 - 
9:00 p.m. on April 26. 1990 at Holiday Inn North 
(2815 Capital Bkd.). U.S. 1 North Boulevard. 
Raleigh, N.C. 



Cc 



■ omment Procedures: Any interested person 
may present his or her views and comments either 
in writing prior to or at the hearing or orally at the 
hearing. Any person may request permission to 
be heard or information about the proposed ndes 
by writing or calling Dolores Whittemore. Child 
Day Care Section, 701 Barbour Dr'rve, Raleigh, 
N.C. 27603; (919) 733-4801. 

CHAPTER 3 - FACILITY SERVICES 



SUBCHAPTER 3U - CHILD DAY CARE 
STANDARDS 

SECTION .0100 - PURPOSE AND DEFINITIONS 

.0102 DEFINITIONS 

The terms and phrases used in this Subchapter 
shall be dcfmed as follows except when the con- 
tent of the rule clearly requires a different mean- 
ing. The defmitions prescribed in G.S. 110-86 
also apply to these Rules. 
(14) "Large child day care home" or "large 
home" means any day care facility as defmed 
in G.S. 110-86(3) which is authorized to 
routinely provide care to a maximum of 12 
children when any clidd present is pres- 
chool-aged or, when all children present are 
school-aged, to a maximum of 15 children. 
The large home mav exceed these maximum 
capacities, under the following conditions. 



provided the appropriate child/statY ratios 
are not exceeded: 

(a) by no more than five school-aged children 
for no more than one hour per dav, im- 
mediately after school; and 

(b) by no more than two children for a max- 
imum of two weeks provided a sufficient 
number of children are scheduled to be 
deleted from the rolls of the large home 
within such time to comply with the rou- 
tinely required maximum capacities. 

Statutory Authority G.S. 110-88; 143B-168.3. 

SECTION .0200 - GENERAL PROVISIONS 
RELATED TO LICENSING 

.0202 CENTERS SUBJECT TO LICENSURE 

Any day care center or large day care home as 
previously defmed in Rule .0102 of this Sub- 
chapter which provides care on a regular basis of 
at least once per week, for more than four hours 
but less than 24 hours per day, regardless of the 
time of day and regardless of whether the same 
or different children attend regularly, must be U- 
censcd. These arrangements include, but are not 
hmited to; 

(4) preschool programs housed in a public 
school building, whether operated by the 
pubhc school system or a priwite pro\ider: 

(5) large day care homes, 
f^ summer day camps. 

Statutory Authority G.S. 110-86(3); 143B- 168.3. 

.0203 CENTERS NOT REQl IRED TO OBTAIN 
A LICENSE (REPEALED) 



IISS 



4:24 NORTH CAROLINA REGISTER ^ [arch 15, 1990 



PROPOSED RULES 



Statutory Authority G.S. 
I43B-I68.3. 



110-86(3); 110-106; 



.0206 CAPACITY OF THE FACILITY 

(a) The licensed capacity shaU be no greater 
than the number of children that the total pri- 
mary space, as defined in Rule .1401, used by 
children can accommodate at 25 square feet per 
child. 

(b) The number of children present at the fa- 
cility shaU not exceed the licensed capacity of the 
facility. 

(c) The number of children occupying any 
room of the facility shall not exceed the number 
that the primary space in that room will accom- 
modate at 25 square feet per child except as pro- 
vided in Rule .1401 of this Subchapter. 

Statuloty Authority G.S. 110-86(3); 110-91(6); 
I43B-I6S.3. 

SFXTION .0300 - PROCEDLRES FOR 
OBTAINING A LICENSE 

.0303 RENEWAL OF A LICENSE 

(c) VVlien the Section's representative docu- 
ments noncompliance on the announced renewal 
visit, based on the severity and extent of non- 
compliance, the representative may return to the 
contL'r facility at a later date, but prior to the li- 
cense expiration date, to determine if compliance 
has been achieved; advise the licensee to submit 
written verification that the noncompliance has 
been corrected; recommend issuance of a provi- 
sional license in accordance with Section .0400 
of this Subchapter; or recommend denial of the 
application for renewal. Final disposition of the 
recommendation to deny is the decision of the 
Section Chief When the application for rcncv\'al 
of a license has been denied, the letter of denial 
shall be posted prominently in the facility imme- 
dialelv upon receipt. The stipulations of Rule 
.0302(h) shall apply. 

Statutory A ulliority 
I43B-I68.3: I50B-3. 



G.S. 110-88(5); J/0-93; 



SECTION .0400 - ISSUANCE OF PROVISIONAL 
AND lEMPORARV LICENSES 

.0401 PROMSIONAL LICENSES 

(a) A provisional license may be issued in ac- 
cordance with the provisions of G.S. 110-88(6) 
for any period of time not to exceed twelve con- 
secutive months for any of the following reasons; 
(4) To allow an applicant to open a facility 
even though a license has not been issued. 
pro\ided the applicant made initia: appli- 



cation for a day care license at least four 
weeks prior to the scheduled opening date, 
has complied with the Section's requests 
for informatic^n to demon.strate potential 
compliance with the Oeneral Statutes and 
the rules of this Subchapter, and the Sec- 
tion has not determined that the applicant 
is ineligible for a license. 

Statutory' Authority G.S. 110-88(6); N3B- 168.3. 

SECTION .0500 - AGE APPROPRIATE 
ACTIVITIES FOR CENTERS 



.051 1 ACTIVITIES FOR INFANTS AND 
TODDLERS 

(d) Infants shall have their positions and lo- 
cations changed throughout the day and shall 
have frequent opportunities each day to be out- 
side the crib or playpen in addition to the time 
spent attending to their physical care. A safe, 
clean, uncluttered area shall be available to in- 
fants to crawl or creep. 

Statutory Authority G.S. 1 10-91 (2).( 12); I43B- 
168.3. 

SECTION .0600 -SAFETY REQLIRE.MENTS 
FOR DAY CARE CENTERS 

.0601 SAFE ENVIRONMENT 

(a) A safe indoor and outdoor environment 
shaU be provided for the children in care. 

(b) All h^i/ardous items, materials and equip- 
ment shall be used by children onh' when adult 
supervision is pro\'idcd. 

(c) Each day care center shall provide equip- 
ment and fumisliings that are child-size or which 
can be adapted for safe and effective use by chil- 
dren. Chairs and tables shall be of proper height 
for the cliildrcn who will be using them. 

Statutory Authority G.S. 110-91(6); I43B-I68.3. 

.0602 CONDITION OF EQLIPMENr AND 
FLRNISIIINGS 

(a) All equipment and furnishings shall be in 
good repair and wi4i shall be maintained in use- 
able condition. 

(b) Equipment and furnishings shall be sturdy, 
stable, free of sharp edges, lead based paint, loose 
nails, splinters and other hazards that ma_\ injure 
children. 

Statuloty Authority G.S. 110-91(6); I43B-168.3. 

.0603 OVERNIGHT FURNISHINGS 

A safe and comfortable bed. cnb, or cot, 
equipped with a firm waterproof mattress at least 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



11S9 



PROPOSED RULES 



four inches thick will be provided for each child 
who remains in the center after midnight. 

Statutory Authority G.S. 110-91(6); I43B-I68.3. 

.0604 GENERAL SAFETY REQLIREMENTS 

(a) Potentially hazardous items, such as fu^- 
earms and ammunition, hand and power tools, 
nails, chemicals, lawn mowers, gasoline or kero- 
sene, archery equipment, propane stoves, 
whether or not intended for use by children, shall 
be stored in locked areas or with other appropri- 
ate safeguards, or shall be removed from the 
premises. 

(b) Electrical outlets not in use which are lo- 
cated in space used by the children shall be cov- 
ered with safety plugs unless located behind 
furniture or equipment that carmot be moved by 
a child. 

(c) Electric fans shall be mounted out of the 
reach of children or shall be fitted with an ap- 
propriate mesh guard to prevent access by chil- 
dren. 

(d) All small electrical appliances shall be used 
only in accordance, with the manufacturer's in- 
structions. 

(e) Electrical cords shall not be accessible to 
infants and toddlers and extension cords shall not 
be used. Frayed or cracked electrical cords shall 
be replaced. 

(f) AH materials used for starting fires, such as 
matches and lighters, shall be kept in locked sto- 
rage or shall be stored out of the reach of chil- 
dren. 

(g) Smoking shall not be permitted in space 
used by children when children are present. All 
smoking materials must be kept in locked storage 
or out of the reach of children. 

(h) Fuel burning heaters, fireplaces and floor 
furnaces shall be provided with a protective 
screen attached securely to substantial supports 
to prevent access by children and to prevent ob- 
jects from being thrown into them. 

(i) Plants that are toxic shall not be in indoor 
or outdoor space that is used by or is accessible 
to children. 

(j) Children shall play inside the fenced out- 
door play area. Gates to the outdoor play area 
shall remain securely closed while children oc- 
cupy the outdoor play area. 

(k) Air conditioning units shall be located so 
that they are not accessible to children or shall 
be fitted with a mesh guard to prevent objects 
from being thiovvn into them. 

(1) Gas tanks shall be located so they are not 
accessible to the children or shall be in a protec- 
tive enclosure or surrounded by a protective 
guard. 



(m) Cribs and playpens shall be placed so that 
the children occupying them shall not have ac- 
cess to cords or ropes, such as Venetian blind 
cords. 

Statutory Authority G.S. 110-85(2); 110-91(3), 
(6); I43B-I6S.3. 

SECTION .0700 - HEALTH AND OTHER 
STANDARDS FOR CENTER STAFF 

.0705 SPECLVL TRAINING REQLIREMENTS 

(e) Each day care facility shall have at least one 
person on the premises at all times who is certi- 
fied by either the American Heart Association or 
the iAmcncan Red Cross to perform child car- 
diopulmonary resuscitation. 

Statutory Authority G.S. 1 10-91; 143B-I68.3. 

.0101 IN-SERVICE TRAINING 
REQLIREMENTS 

(b) The center director and any staff who have 
responsibility for planning and supervising a day 
care program, as well as staff who work directly 
with children, shall participate in in-service 
training activities aimually, according to the in- 
dividual's assessed needs. An individual with 
more than five years documented, professional 
child care experience and more than lOU hours 
of cumulative, approved in-service training shall 
complete six hours of in-service training annu- 
ally; all others shall attend 20 hours of in-service 
training annually. Stcdf may ohoooo m^ ef tfee 
foUowing options fof mot ' ting tl*e in ■ ior . ioo fe- 
quiiLMUL'nt: 

f44 ?-h» strtff p e rson shall complete 30 clock 
hours ©f in senico training aoti' i itios 
which af» related te- child eate et te the 
pt ' iT i on'o jet* rcsponsibilitioH; ef 
(^ U t4** steff person 1«» completed si* 
quarter hours ef 64 clock hoiu's ef early 
childhood education ef child development 
aftd is enrolled m aft early cliildhood ef 
child development cuiriculiun program, 
completion ef ef emollment tft a course 
' . s'hich is required »f approved fe* com 
pletion ef that- curriculum program wiH 
fulfill the annual in senico requirement. 



Statutory 
1 43 B- 168.3. 



Authority G.S. 110-91(11); 



.0712 STAFF/CHILD RATIOS FOR SMALL 
CENTERS 

(a) The staff/child ratios and group sizes for a 
small day care center are as follows: 
f4^ Effective LX-cember h 4^^^^ 
Aee of Children No. Children 



1190 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



to 5 years 

2 to 5 years 

3 to 5 years 

5 years and older 



No. Staff 
1 
1 
1 
1 



7 
10 
15 

20 

Group Size 
14 
20 
25 
25 



f3^ Eff e ctiv e JtOy h 4^^^ 

Age ef Childron >^ Childron 

^^ to •^ y e ars 44 



N^ Staff 


Group S«e 


4- 


n 


4- 


m 


4- 


3^ 


4- 


3^ 



Statutory Authority G.S. 110-91(7); I43B-I6S.3. 

.0713 STAFF/CHILD RATIOS FOR MEDIUM 
AND LARGE CENTERS 

(a) The staff/child ratios and group sizes for 
single-age groups of children in medium and large 
day care centers are as follows: 
(4^ Eff e ctive Docombor h 4^>^^ 
Age of Children No. Children 

to 2 years 7 

2 to 3 years 12 

3 to 4 years 15 

4 to 5 years 20 

5 years and older 25 



No. Staff 




Group Size 
14 
24 
25 
25 
25 


^ Effoctivo 
Age ef Crhiidi 
t» 5 VL'uru 


=eft 
Wef 


4t WSOf 

^^ier Childron 
4 

44- 
44 
4^ 
34 


^ te 4 yoaro 
4 te -S )ears 
^ yeurti aft4 e 


>;^Steff 
4- 
4- 
4- 




Sf&( 


4a 

i3 

3^ 



4 3^ 

4 3^ 

(i) Except as provided in Paragraph (g) of this 
Rule, statf members who are counted in meeting 
the staff/child ratios as stated in this Rule shall 
not concurrently have responsibility for food 
preparation or other duties which are not direct 
child care responsibilities. 

Statutory Authority G.S. 110-91(7); I43B-I68.3. 

SECTION .1600 - AA REQUIREMENTS 

.1606 STAFF/CHILD RATIOS IN AA CENTERS 

(a) The center shall comply with the staff-child 
ratios and group sizes set in this Rule. 
(44 E.ff e ctive Jttly 47 -W^ 



Aoe 


STALE 




Sh44» t« 4a monthf. 




4 




4 t«- 3 'I'Oars 




4- 




3 te ^ vears 




4- 




i te- 4 vears 




4 








4 

4- 




^ te- 4 vears 






6 aft4 oldor 




4 




NUMBER Q^ 


GROUP 




CHILDREN 


S4Z6 




STAFF 


^ 


4a 




3 


9 


44 




3 


a 


\% 




3 


4« 


3© 




3 


4^ 


3§ 




3 


44 


3^ 




3 


3© 


34 




3 


{^ Effjctivo .fely 47 ¥mk 






AGE 


STALE 




Birth to 12 months 








1 to 2 years 








2 to 3 years 








3 to 4 years 








4 to 5 years 








5 to 6 vears 








6 and older 








NUMBER OF 


GROUP 


1 




CHILDREN 


SI/E 




STAFF 


5 


10 




2 


6 


12 




2 


9 


18 




2 


10 


20 




2 


13 


25 




2 


15 


25 




2 


20 


25 




2 



'/.-i'/ NORTH CAROLINA REGISTER March 15, 1990 



1191 



PROPOSED RULES 



Statutory Authority G.S. 110-88(7); I43B-I683. 

.1615 NIGHT CARE 

full timo shift at- the tkty eaf© cent e r ef another 
buoixioss. 

Statutory Authority G.S. 110-88(7); I43B-168.3. 

SECTION .1700 - DAY CARE HOME 
STANDARDS 

.1701 GENERAL PROVISIONS RELATED TO 
REGISTRATION OF HOMES 

(b) At the beginning of each fiscal year, the 
Section shall prepare a written plan explaining 
the guidelines for making randornly-selected un- 
announced compliance visits to registered day 
care homes. Recognizing day care homes usually 
have only one caregiver present, unannounced 
compliance visits will be reasonably unobtmsive 
and not distract the caregiver from the usual 
routines and responsibilities. The plan shall be 
dated and signed by the Section Chief and shall 
be kept in a confidential fde by the Section Chief. 

(c) Wlien a day care home exists, all pres- 
chool-aged children shall be counted in the reg- 
istered capacity. This includes the caregiver's 
own preschool-aged children. The preschool- 
aged child of an emergency caregiver need not be 
counted in the registered capacity for the first day 
of the emergency caregiver's service. 

History Note: Statutory Authority G.S. 1 10-85; 
110-86(4); 110-88(3); 110-90. 1; IIO-IOI; 110- 
105.1; 1 10- 106.1; 1 43 B- 168.3. 

.1702 INITIAL REGISTRATION 

(c) Upon receipt of an acceptable application, 
the Section shall may issue written permission to 
operate on a temporary basis. A person is not 
able to operate legaUy until he or she has received 
tbftt- pormir . r . ion. cither temporary permission to 
operate or a registration certificate. 

Statutory Authority G.S. 110-88(3); IIO-IOI; 
143B-I68.3. 

.1716 FAILURE TO MEET AND MAINTAIN 
REQUIREMENTS 

(c) The Section may recommend imposition 
of a civil penalty in accordance with the proce- 
dures set forth in Rules .3201 through .2205 of 
this Subchapter and according to the following 
schedules: 

(1) A civil penalty in an amount up to one 
thousand dollars ($1.000.00) may be im- 
posed when the Section has substantiation 



that a child was abused or neglected while 
in the care of the day care home. 

(2) A civU penalty in an amount up to two 
hundred dollars ($200.00) may be im- 
posed for the following violations: 

(A) A history of exceeding the number of 
children allowed in a registered day care 
home; 

(B) Repeated incidences where there has 
been a lack of su£ervision of the children; 
or 

(C) Willful, repeated pattern of noncom- 
pliance with any requirement contained in 
this Subchapter or in the General Statutes^ 

(3) A civil penalty in an amount up to one 
hundred dollars ($100.00) may be im- 
posed for the following violations: 

(A) Denial of entry to an authorized repre- 
sentative of the Department or Section; 

(B) Documented noncompliance with the 
number of children aUowed in a registered 
day care home; 

(C) Lack of supervision of the children in 
care; or 

(D) Failure to comply with a corrective 
action plan designed by the Section to 
correct noncompliance with any applica- 
ble requirement in this Subchapter or in 
the General Statutes. 

Statutory Authority G.S. 110-88 (3),(5),(6a); 
110-98; IIO-IOI; I43B-168.3. 

Mil HEALTH, SAFETY AND SANITATION 
REQUIREMENTS 

(a) Each day care home shall comply with the 
following standards in order to maintain a safe, 
healthy and sanitary environment for children: 
(1) To assure a healthy environment, the op- 
erator shall: 
(A) have on file, for each child who attends 
on a regular basis, a health and emergency 
information form completed and signed 
by the child's parents or guardian. The 
completed form must be on fde on the 
first day the child attends. A recom- 
mended form is available from the Sec- 
tion. However, the operator may use 
another form provided that form includes 
the following information: 
(viii) notarized authorization for the op- 
erator to seek emergency medical care 
in the parent's absence. 
(D) provide adequate and individual space 

for each child to rest comfortably. 
(F) provide a quiet, separate area which can 
be easily supervised for children too sick 
to remain with other children. Parents 



1192 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



must be notified immediately if their child 
becomes too sick to remain in care. 

(G) visually supervise all children who are 
awake and be able to hear and respond 
quickly to those children who are sleeping 
or napping. 44*e operator must be able 
te- r e spond te- tbe childr e n immodiatoly. 

(11) be able t» provido successfully complete 
basic multimedia fu-st aid course prior to 
registration. 

(I) be certified by the American Heart As- 
sociation or the American Red Cross to 
perform child CPR prior to registration. 
(3) To assure a safe enviromncnt, the home 
operator shall: 

(A) keep all areas used by the children, in- 
doors and outdoors, reasonably clean and 
orderly and free of items which are po- 
tentially hazardous to children. This in- 
cludes the removal of small items that a 
child can swallow. In addition, loose nails 
or screws and splinters must be removed 
on inside and outside equipment. 

(E) cover aU electrical outlets not in use and 
remove old, cracked or fraved cords in 
occupied outlets. 

(H) keep all medicines in locked storage, 
ef ift a plact? oomplotely inacooooiblo to 
cliildron. 

(I) keep hazardous cleaning supplies and 
other oubf i toncoo items that might be poi- 
sonous out of reach or in locked storage 
when preschool-aged children are in care, 
e.g. toxic plants. 

(P) enclose any in-ground swimming pools 
18 inches or deeper by a fence not less 
than 5 feet high to prevent chance access 
by children. The swimming pool shall be 
separate from the play area. Access to the 
water in above ground swimming pools 
must be prevented by locking and secur- 
ing the ladder in place or storing the lad- 
der in a place inaccessible to the children. 

(R) practice fife dftH procoduroa with tbe 
children at- leas* monthly, and maintain 
records of monthly fire drills giving the 
date each drill is held, the time of day, and 
the length of time taken to evacuate the 
home. 



(S) make all necessary efforts to provide a 
safe indoor and outdoor environment for 
the children in care. Animals that are 
potentially danuerous to children, such as 
pit bulldoizs and rottweilers or other ani- 
mals determined bv the Section to be 
dangerous, arc not pcnnittcd on the 
premises of a day care home. 



(4) To assure the safety of children whenever 
they are tran.sported, the operator, or any 
other transportation provider, shall: 

(A) have written permission from a parent 
or guardian to transport his or her child 
and notify the parent when and where the 
child is to transported. 

(5) 1 o assure a sanitary environment, the op- 
erator shall: 

(A) have a well or water system that com- 
plies with the requirements of the local 
health department and the Division of 
Health Services, Department of Human 
Resources. Written verification of well 
approval is required. 

(G) refrigerate aU perishable food and bev- 
erages. The refrigerator shall be in good 
repair and maintain a temperature of 45 
degrees Fahrenheit or below. A refriger- 
ator thermometer is required to monitor 
the temperature. 
(b) The operator shall assure that the structure 
in which the day care home is located comphes 
with the following requirements: 

(1) Comply with Section 509.2 of the North 
Carolina Building Code or have written 
approval for use as a day care home by 
the local building inspector as follows: 

(A) Meet Volume I-B I'niform Residential 
Building Code oi tie a manufactured 
home bearing a third party inspection la- 
bel certifying compliance with the federal 
Manufactured Home (_\:>nstruction and 
Safety Standards or certif\ing compliance 
with constRiction standards adopted and 
enforced by the State of North Carolina. 
Homes shall be installed in accordance 
with North Carolina Manufactured' .Mo- 



bile 1 lome Regulations published by the 
NC Department of Insurance. 
Hxception: Single wide manufactured 
homes will be limited to a maximum of 
three preschool-aged children (not more 
than two may be two years of age or less) 
and two school-aged children. 

(B) All children shall be kept on the ground 
level with an exit ■■^X_ grade. 

(C) All homes shall l2e equipped with an 
electrically operated (with a battery 
backup) smoke detector, or one elec- 
trically operated and one hatters operated 
smoke detector located next to each other. 

(D) All homes shall be pro\idcd with at 
least one fi\e lb. 2-A:l()-B:C t\ne extin- 



guisher readily accessible for evei'v 2.500 
square feet of floor area. 
(E) Fuel burning space heaters, fireplaces 
and floor furnaces which are listed and 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1193 



PROPOSED RULES 



approved for that installation and are 
provided with a protective screen attached 
securely to substantial supports will be 
aUowed. However, unvented fuel burning 
heaters and portable electric space heaters 
of all types are prohibited. 
f3) llavQ at- leant &r# omoko dot e otor aR4 9ftt» 
fife oxtinguishor plac e d m appropriat e l©- 
oationo. 

(2) (^ Assure that all indoor areas used by 

children are adequately heated in cool 
weather and ventilated in warm weather. 
f4^ Af i suro tj^at feet burning hoatoro afe prop 
efiy vented te- tfee outside. Fuel burning 
hoatoro, firoplacoo, otovos, aft4 portable 
oloctrio opauo hoatoro ohall have a ooouroly 
attuchod guard. 

(3) Cover or insulate hot pipes or radiators 
which are accessible to the children. 

Statutory Authority G.S. 110-88(3); 110-101; 
1 43 B- 1 68. 3. 

SECTION .1900 -SPECIAL PROCEDLRES 

CONCERNING ABLSE/NEGLECT IN DAY 

CARE 

.1904 ADMINISTRATIVE SANCTIONS 

(a) A special provisional license or registration 
may be issued for a six-month period when the 
Section determines that abuse or neglect occurred 
in a child day care center or home. The follow- 
ing provisions shall apply: 

(1) the special provisional license or registra- 
tion and the reasons for its issuance shall 
be posted in a prominent place in the 
center or home as soon as they are re- 
ceived by the Ucensee or registrant, 
(c) A civil penalty, in accordance with the 
schedules Listed in Rules .1716 and .2206 of this 
Subchapter, may be levied against the operator 
of a day care home or center when the Section 
determines that child abuse or neglect has oc- 
curred while the child was in the care of the home 
or center. In addition, any Any violation of the 
terms of a special provisional license or registra- 
tion may result in the assessment of a civil pen- 
alty as provided in Rule .1716 and Rules .2202 
through .2206 Soction .2200 of this Subchapter. 

Statutoiy Authority G.S. 110-88(5); 110-88(6a); 



SECTION .2000 - RULEMAKING AND 
CONTESTED CVSE PROCEDLRES 

.2008 WRITTEN REPRI.MANDS 



(e) ¥he r e primand shall be posted m a promi 
n e nt plaoo m the contor Bf homo fof a p e riod ef 

Statutory Authority G.S. 110-102.2; I43B-168.3. 

.2011 REVOCATION 

(c) The revocation order shall specify the rea- 
sons for its issuance and the effective date of re- 
vocation and shall be posted prominently in the 
center or home immediately upon receipt. The 
licensee or registrant shaU surrender the license 
or registration on the effective date of the revo- 
cation order and shaU refrain from operating the 
center or home thereafter. 

fd) If revocation is stay e d ponding app e al, the 
ro' i ocation ord e r shall be posted m a prominent 
place ift the contor »f homo ponding final action. 

(d) (e) Failure to comply with the revocation 
order shall result in civil action in accordance 
with G.S. 110-103.1 or a criminal penalty in ac- 
cordance with G.S. 110-103, or both. The Sec- 
tion may also seek injunctive relief in accordance 
with G.S. 110-104. 

(e) (f) The operator may not apply for a new 
Ucense or registration for that facility or home for 
at least 90 days from the effective date of the re- 
vocation order or, when administrative or judicial 
review is requested, from the date the fmal agency 
decision or judicial determination is rendered, 
whichever is later. 

Statutory Authority G.S. 110-102.2; 143B-168.3; 
150B-3. 

SECTION .2100 - CHLRCH DAY CARE CENTER 
REQUIREMENTS 

.2101 CENTERS OPERATING UNDER 
G.S. 110-106 

(b) Church day care centers shall comply with 
all day care center requirements in this Subchap- 
ter except for the rules regarding age-appropriate 
activities in Rules .0505 -^ .051 1(a) Soction rft^OO 
and Rules .0704, .0707 - .071 1 and Paragraphs (a) 
througli (d) of Rule .0714 regarding staff quali- 
fications and training requirements. Compliance 
shall be documented at least annually using the 
same forms and in the same manner as for aU 
other centers. 

Statutory Authority G.S. 110-/06; 143B-168.3. 

SECTION .2500 - DAY CARE FOR 
SCHOOL-AGE CHILDREN 

.2501 SCOPE 

The regulations in this Section apply to largo 
day- eafe homos aft4 all cliild day care contoro fa- 



1194 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



cilities offering care to six or more school-age 
children exclusively or as a component of any 
other program. All regulations in this Subchap- 
ter pertaining to fuU-time, part-time, or seasonal 
child day care shall apply to programs for 
school-age children except as provided in this 
Section. 

Statutory Authority G.S. 110-86(3); 110-91; 
I43B-I68.3. 

.2502 SPECIAL PROVISIONS FOR 
LICENSURE 

(a^ A contor facility providing care for school- 
age children exclusively shall be issued a license 
restricting care to school-age children as defined 
in Rule .0102 of this Subchapter. The license 
shall be issued for the time period the facility wJU 
operate, not to exceed a maximum of _12 months. 
A oont e r facility providing care for school-age 
children exclusively on a seasonal basis between 
May 15 and September 15 shall be licensed as a 
summer day camp. 

(fe) A contor which pro' i idoG eafe fof proochool 
childri ^ n a«4 fof mor e than t«* F . chool ag a chU 
dron r . haU b» iscuod a liconr . o with a ridor a«- 
thoiiaing caro f&f lichoul age oliildron. 

Statutory Authority G.S. 110-S8(I); 110-91; 
1 43 B- 168.3. 

.2503 BUILDING CODE REQUIREMENTS 

(a) Building code requirements adopted by re- 
ference in Section .1300 of this Subchapter shall 
apply for a contor facility providing care to 
school-age children when any preschool-age child 
is also in care. 

(b) Any building which is currently approved 
for school occupancy and which houses a public 
or private school during the school year shall be 
considered an approved building to house a eeft- 
tep facility serving school-age children exclusively. 
The operator shall be responsible for obtaining 
and submitting copies of aU applicable inspection 
reports. 

(c) For the purpose of carrying out the pro- 
visions of G.S. 1 10-91(4) for uchool ago eafe at- 
rangemantr. summer day camps not covered by 
Paragraphs (a) or (b) of tliis Rule, the following 
North Carolina Building Codes shall apply to the 
structure described in Rule .2504(b): 

(1) When the authorized capacity of the facil- 
ity is less than 30 children, the structure 
shall, at the mmimum, meet the require- 
ments for residential occupancy as pre- 
scribed in Volume IB of the North 
Carolina BuUding Code. Cliildrcn may 



use only those floors which leave at least 
one grade level exit. 

(2) When the authorized capacity of the facil- 
ity is more than 29 children, but less than 
100 children, the structure shall, at the 
minimum, meet the North Carolina 
Building Code requirements for business 
occupancy. 

(3) When the authorized capacity of the facil- 
ity is more than 99 children, the structure 
shall, at the minimum, meet the North 
Carolina Building Code requirements for 
assembly occupancy, or educational oc- 
cupancy or institutional occupancy. 

(d) A copy of the North Carolina Building 
Code is on file at the Child Day Care Section at 
the address given in Rule .0102 of this Subchap- 
ter and shall be available for public inspection 
during regular business hours. 

Statutory Authority G.S. 110-88(2); 110-91(4); 
1438- 168.3. 

.2504 SPACE REQUIREMENTS 

(a) rVU space requirements specified in Section 
.1400 apply when a contor facility provides care 
for school-age children and any preschool chdd 
is also in care, or when a program which provides 
care exclusively for school-age children routinely 
operates indoors in a permanent structure for 
more than 25 percent of each day. A gymnasium 
or other single use room may be included in the 
space measured for licensed capacity when used 
as primary space. 

(b) A contor facility licensed as a summer day 
camp shaU have a permanent structure tlwrt- 
sop i ' e s ae it* homo ba ' io V i horo paronta doli'rer aft4 
pick Hf» th e ir childron ouch i^i^ c*ft4 may choor.o 
located at the home base which is the primary 
site of the day camp acti\ities. The permanent 
structure may be a building or permanent roofed 
shelter with overhang. The day camp shall meet 
one of the following space requirements: 

(1) When activities for children are routinely 
conducted outdoors or off the premises 
for at least 75 percent of each day, a min- 
imum of ten square feet per child of in- 
door space, exclusive of kitchens, 
hallways, restrooms, closets, and storage 
areas, shall be pro\idcd. 

(2) Wlien the camp's home base does not 
provide te.n square feet of primary space 
indoors, the camp shaU provide notarized 
copies of aU letters, agreements, or con- 
tracts with other facilities which guarantee 
that children wUl be accommodated com- 
fortably indoors in the event of inclement 
weather. 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1195 



PROPOSED RULES 



Statutory Authority G.S. 1 10-91 (3), (6); 
1 43 B- 168.3. 

.2505 HEALTH REQUIREMENTS FOR 
CHILDREN 

(a) All requirements of Section .0800 of this 
Subchapter apply to school-age child care ar- 
rangements with the following exceptions: 

(1) A medical examination report shall not 
be required for any child enrolled in an 
accredited public or private school. 

f3) A iitatemont r . ignL'd by Ae public er pri- 
vate school principal Bf kis dor . ignoo at- 
tOBting t» ti»» prooonco ef a oomploto 
immunii'.ation r e cord vpt tbe F i chool ftl«»^ 
mciy be i i ubr . titutud fof a record ef m- 
muni/uti(ms. 

(2} 1^ Rule .0806 does not apply. 

(3) If the day camp maintains its master re- 
cords for children and staff in a central 
location, emergency inlbrmation for each 
staff person and child shall always be on 
site. The emergency information on site 
shall include the name and telephone 
numbers of the child's parent or other re- 
sponsible person, the child's or staff per- 
son's physician or preferred hospital, any 
chronic illnesses and medication taken for 
that illness, any allergy and recommended 
treatment for tha t allergy, and any other 
information that has a direct bearing on 
medical treatment and safe care. I'he 
parent's signed permission to obtain 
medical attention must also be on site 
with the child. 



(b) AU requirements specified in Section .0900 
of this Subchapter apply when any preschool 
child is in care or when food is provided by the 
contor »f r . ummur day camp, facility. 

(c) If food is prepared at the summer day camp, 
the regulations regarding sanitary facilities, food 
preparation and service for summer camps as 
adopted by the Health Services Commission and 
codified in 10 NCAC lOA .1000 shall apply. 

(d) If food is brought from home by children 
or catered, the following requirements apply: 

(1) Sanitary cold storage shall be provided for 
perishable snacks or lunches brouglit from 
home. 

(2) Fror . h Safe drinking water shall be made 

available at all times regardless of where 
activities are provided. 



Statutory 
1 43 D- 1 68. 3. 



Aui/iority G.S. 1 10-91 { I ),(2); 



(a) First aid equipment shall always be avail- 
able regardless of where activities are provided, 
^(b) All regulations in Rule .1403 regarding 
swimming pools apply. 

(c) Archory oquipmont, pow e r e quipment aft4 
othor potentially hai'.ardouo it e ms shall b» stor e d 
ift a lockod afea when »»* m w» »f with othor 
appropriat e safeguards. Thooo items shaU b» 
uood by children only under the direction aft4 
supop i 'ioion ef staff. Potentially hazardous items, 
such as archery equipment, firearms and ammu- 
nition, hand and power tools, propane stoves, or 
chemicals shall be used by children only when 
adult supervision is provided. Such potentially 
hazardous items, whether or not intended for use 
by the children, shall be stored in locked areas 
or with other appropriate safeguards, or shall be 
removed from the premises. 

(d) All equipment, materials and facilities used 
by children shall be in good repair, of safe design, 
and properly installed. 

(e) Children shaU wear life jackets whenever 
they participate in boating, rafting or canoeing 
activities. 

Statutory Authority G.S. 110-91; 143R-168.3. 

.2508 AGE-.\l'PROPRI,\TE ACnvniES 

(a) Child day care facilities which provide care 
to school-age children shall provide activities ap- 
propriate to the age and interests of the children. 

(b) (a)- The requirements for age appropriate 
activities and materials set forth in Rules .0506 - 
.0509 shall apply to school-age programs which 
operate for more than three hours per day and 
which routinely operate a program of care in- 
doors for more than 25 percent of each day in 
space designated, and which has been approved 
by the Section, for that purpose. 

(b^ Child day eafe centers i i vhich provide eape 
te school ag e children f»f »» more than three 
hours pef day shall pro' t ide equipment, materials 
aftd opportuniti e s f»f at- l e ar i t thr ee ef i^ typos 
t4 acti' i itie j i li ;. led i«- Rule .05 10(e). Actisity ar e as 
shall be UF . ed wh e r e f e asibl e . 

(c) When activities for children are routinely 
conducted outdoors or otT the premises for at 
least 75 percent of each day, equipment and ma- 
terials shaU be provided to enable children to 
participate in at least three different activities 
each day. 

(d) fe) All equipment and materials used by 
school-age children shall be appropriate for the 
age and size of the children using the items. 

Statutory Authority G.S. 1 10-91 (6). ( 12); 143B- 
168.3. 



.2506 GENERAL SAFETY REQUIREMENTS 



1196 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



.2509 ACTIVniKS: OKF PRKMISES 

(b) The ocntur facility shall develop a schedule 
of activities which is posted in a conspicuous 
place in the home base or given to the parents. 

Statuton> Authority G.S. 1 10-91 (6), ( 1 2); I43B- 
I6S3. 

.2510 STAFF QUALIFICATIONS 

(a) The staff requirements in Section .0700 
shall apply to any school-age program which is 
operated on a full year basis as a unit of a contor 
facility which also provides care to preschool-age 
children. 

(b) Each day camp or before/after- school pro- 
gram shall have an administrator on site who is 
at least 21 years old and has at least one year of 
full-time experience or two summers' experience 
working with school-age cluldren in a day care 
or day camp setting. 

(c) There shall be at least one staff person who 
is at least 18 years old and literate for each group 
of 25 children present, ef wh e n +4 afwi 44 yeaf 
e44 pL'r i : i »nL' i aw counl e d i» 4*e L . taff child nitio, 

pcr ' jonti ' I ' . ith e ach gioup oi 34 children present. 

(e) Whenever cliildren participate in swimming 
or other aquatic activities, the following pro- 
visions shall apply: 

(1) The children shall be supervised by per- 
sons having American National Red 
Cross fetfe saving Lifeguard certificates or 
equivalent certificates: 

(A) One lifeguard is required for groups of 
25 or fewer children. 

(B) Two lifeguards are required for groups 
of 26 or more children. 

The Litaff child ratios required m tfeis 
Subchapt e r f»f school aged children shall 
always be maintained. 44*e required tfe- 
guards shall ftt-4 be counted m- the number 
ef staff required te meet the staff child fa- 

f5i fe addition to- the requirements (*f Sub 
paragraph (e)( 1). the s . taff child ratio shall 
be B«e adult te each 4-? children m bodies 
ef water other than swimming pools. 

(2) (^ A person with lifeguard certification is 

not required when there are no more than 
12 children present and the body of water 
has no portion deeper than 30 inches and 
the total surface area is not more than 400 
square feet. The children shall be super- 
vised by at least one adult who is certified 
to perform cardiopulmonaPv" re '. usitatum. 
resuscitation. 



(4} Children shall weaf Ufo jack e ts wh e nev e r 
they participate » boating, rafting »f Ga- 
nooing activities. 

Statutory Authority G.S. 1 10-91 (8},{ 1 1 ): I43B- 
168.3. 

.251 1 OTHER STAFF RFQL IRFMKMS 

(a) The staff/child ratios required in this Sub- 
chapter for school-age children shall always be 
maintained. The required lifeguards shaU not be 
counted in the number of staff required to meet 
the staff/child ratio. 

(b) In addition to the requirements of Rule 
.2510(e)(1) of this Subchapter, the staff/child ra- 
tio shall be one adult to each 12 children in 
bodies of water other than swimming pools. 



Statutory Authority G.S. 
I6S.3. 



1I0-91(S).(I1); 143B- 



SECTION .2600 - REQIIREMENTS FOR LARGE 
DAY CARE HOMES 

.2601 SCOPE 

The Rules in this Section apply to large child 
day care homes. A large child day care home or 
large home shaU routinely provide care to no 
more than 12 children when any preschool-age 
child is in care, or when all children present are 
school-age, to no more than 15 children, except 
as allowed by Rule .0102 of this Subchapter. 
AU children present, including except the opera- 
tor's own school-age children, shall be included 
in the ma.ximum number of children allowed to 
be present. 

Statutory Authority G.S. 110-86(3): I43B-I6S.3. 

.2602 GENER.VL PRO\ ISIONS FOR 
LICENSURE 

(g) Announced and unannounced \isits shall 
be conducted as quickly as pt)ssible to aUow car- 
egivers to give full attention to the children in 
care and to resume their routines and schedules. 



Statutoiy Authority G.S. II0-S8; 110-93; I43B- 
168.3. 

.2606 STAFF REQUIREMENTS 

(b) The operator shall be at least 21 years old 
and hterate and shall have completed at least one 
year of fuU-timc caregiving experience in a regis- 
tered or licensed child day care home or center 
or have equi\alent child care experience that can 
be venlied. 

(f) The operator of each large home shall 
comply with the special training requirements 
regarding recognition »f inf e ctious diseases aft4 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1197 



PROPOSED RULES 



fifrt ai4 training prescribod hf in Rule .0705 in 
this Subchapter. 

(g) The operator and each staff person required 
to meet the staff/child ratio shall participate in » 
minimum ef 30 hours ef mservice training annu- 
ally as required by Rule .0707 of this Subchapter . 
The content of the training shall be directly re 
lated to the care of children and shaO meet the 
criteria of Rule .0708 of this Subchapter. 

Statutory Authority G.S. 110-86(3); 

110-91(8). (I I): I43B-I6S.3. 

.2607 STAFF/CHILD RATIOS AND 
SLPRRVISION 

(a) The staff/child ratios and group sizes for a 
large child day care home are as follows: 



Aue of Children 


Number of Children 


to 4 years 


6 


Number of Staff 
1 


Group Size 
12 


Age of Children 
to 13 years 


Number of Children 

8 


Number of Staff 
1 


Group Size 
U 16 



(No more than three children may be less than 
12 months old) 



Age of Children 

2 to L3 years 

3 to 13 years 
School-aged 



Number of Staff 
1 
1 
1 



Number of Children 
10 
12 
15 

Group Size 
«20 
44 24 
4^25 



(4) I ,arg e hom e r , r . hall He4- be roquirod te hav e 
comm e rcial kitchen oquipmont. 

{^ Larg e homoii shall Ret- be roquirod te- have 
separate handwashing facilities fof striff ef sopa 
fate flush aroas fof diapers. I low e v e r, Ae 4id- 

L,' V 1 u I c, til \jtt mmTT T.j\j I yj KJ\x^\7^y u ikj ■j\j \.\j ct 

handwashing lavatory which i* He* ift Ae 
kitohon. 

(d) f^ The home shall have at least two re- 
motely located exits directly to the outside. 

(e) fg) Firearms and other weapons on the 
premises shall be secured so that they are inac- 
cessible to the children. 

(f) (fe^ Each large home shall have at least 25 
square feet of indoor space for each child for 
which the home is licensed. The indoor space 
shall be measured by a representative of the Sec- 
tion and shall include only those areas of the 
home which are routinely made available to the 
children. The indoor space shall not include 
closets, bathrooms, storage areas, utihty rooms, 
kitchens or space occupied by furniture or 
equipment that is not used by the children. The 
dining area of a kitchen may be counted if it is 
routinely used for cluldren's activities in addition 
to eating. 

(g) fi^ Each large home shall have an outdoor 
play area which provides at least 75 square feet 
of play area for each child present. The play area 
shall be fenced or afford adequate protection by 
some other means as detennined by the Section. 

(h) (j) The outdoor play area shall be free of 
equipment, litter, animals and other objects 
which may be hazardous to cliildrcn. 

(i) fk^ The requirements set forth in Rule .1403 
for the use of swimming pools on or off the 
premises shall apply to large homes. 

Statutory Authority G.S. 110-86(3); 

110-9/(3). (4). (5), (6); I43B- 168.3. 



Statutory Authority G.S. 110-86(3); 110-91(7); 
1 43 B- 168.3. 

.2608 AGE-APPKOPRLAIK ACIIVITIES AND 
EQLIPMKNl 

(a) Each large home shall have a written sche- 
dule posted a\ailable for easy reference by par- 
ents and caregivers. 

Statutory Authority G.S. 110-86(3); 
110-91(6), (12); I43B-I6S.3. 

.261 1 PHYSICAL FACILITY AND SPACE 
REQUIREMENTS 



No 



ot/ce is hereby given in accordance with G.S. 
1 SOB- 12 that the Department of Human Re- 
sources - Division of Social Services intends to 
amend rulc(s) cited as 10 NCAC 49B .0308. 

1 he proposed effective date of this action is 
September I. 1990. 

1 he public hearing will be conducted at 10:00 
a.m. on June 6, 1990 at Disability Determination 
Building. 321 Chapanoke Dr'ne. Raleigh. NC 
27603. 



U9H 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



Co 



. omment Procedures: Interested persons may 
present their views and comments in writing before 
or at the hearing or orally at the hearing. Time 
limits may be imposed as deemed necessary by the 
Commissioner Chairman. A fi.^cal note has been 
prepared. Any person may request information^ 
or copies of the proposed regulations by writing 
or calling Donna A. Creech, Special Assistant, 
Social Services, 325 N. Salisbury St., Raleigh, NC 
276/1 9/9/733-3055. 

CHAPTER 49 - Al DC 

SUBCHAPTER 49B - ELIGIBILITY 
DETERMINATION 

SECTION .0300 - ELIGIBILITY FACTORS 

.0308 INCOME 

(c) Earned income exclusions are found in 45 
CFR 233.20 and this provision is hereby adopted 
by reference under G.S. 150B- 14(c). hi addition, 
the following items of earned income shall be 
excluded in determining eUgibihty: 

(1) Foster Care and State Foster Flome Pay- 
ments equal to or below the state maxi- 
mum rates to AFDC recipients who serve 
as foster parents; 

(2) Famed income from the 185 percent lim- 
itation for up to six months in a calendar 
year of a child apphcant /recipient who is 
a full-time student; 

(3) Famed income from census employment 
under Section 1115 Demonstration I'ro- 
ject Approsed by the Dl 1! IS contingent 
on receipt of federal rcuulations in suffi- 
cient time for implementation. 

Authority G.S. /OSA-25; /OSA-33: /43D-153; 45 
C.F.R. 233; Section ///5 of the Social Security 
Act. 

TITLE II - DEPARTMENT OF 
INSURANCE 



Co 



No 



otice is hereby given in accordance with G.S. 
/50B-/2 that the N.C. Department of Insurance 
intends to amend rule(s) cited as // NCAC 8 
.0702, .0705, .0706, and .0709. 



I he proposed effective date of this action is .lulv 
/, /990. 

1 he public hearing will be conducted at /0:00 
a.m. on April 26, /990 at N.C. Department of In- 
surance, Qualifications Board. 410 Boylan .-ivenue, 
Ralei<rh. \.C.'276//. 



omment Procedures: Written comments may 
be sent to Grover Sawyer, c/o Qualifications 
Board, P.O. Box 26387, Raleigh, N.C. 276//. 
Oral presentations may be made at the public 
hearing. Anyone having questions should call 
Grover Sawyer at (9/9 J 733-390/ or Ellen 
Sprenkelat (9/9) 733-4700. 

CHAPTER 8 - ENGINEERING AND BUILDING 
CODES 

SECTION .0700 - QUALIFICATION 
BOARD-STANDARD CERTIFICATE 

.0702 NATURE OF STANDARD CERTIFICATE 

(a) The Board will issue one or more standard 
certificates to each code enforcement official de- 
monstrating the qualifications set forth in Ruloo 
m^ and;or mm^ U NCAC 8.0706 and /or 
.0707. Standard certificates are available for each 
of the following types of qualified code enforce- 
ment officials: 

(1) code administrator; 

(2) buUding inspector; 
(4) plumbing insp e ctor; 
f4^ mochanicul inspuctor; 
f^ olectrical iiif . pector. 

(3) electrical inspector; 

(4) mechanical inspector; 

(5) plumbmg inspector; and 

(6) hre mspector. 

(b) For each type of enforcement official other 
than code administrator, the Board has estab- 
lished three levels of qualifications. Level 1 for 
each type of official represents generally the skill 
level required for inspection of one-family and 
two-family dwellings and relatively smaU struc- 
tures designed for other purposes. Level II for 
each type represents the skill level required for 
inspection of intermediate-sized or more complex 
buildings. Level III for each type represents the 
skill level required for inspection of buildings of 
any size or degree of comple.^dty. [For details, see 
Rt4e .0706(a) U NCAC 8 .0706(a) ]. 

(c) The holder of a standard certificate is au- 
thorized to practice code enibrcement only 
within the inspection area and level described 
upon the certificate issued by the Board. A code 
enforcement official may qualify and hold one 
or more certificates. These certificates may be for 
different levels in different types of positions. 

(d) A code enforcement official holding a cer- 
tificate indicating a specified level of proficiency 
in a particular type of position is authorized to 
hold a position calling for that type of quahfica- 
tion anywhere in the State of North Carolina. 
A standard certificate must be renewed amiually 
in order to remain valid. 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1199 



PROPOSED RULES 



Statutory Authority G.S. 143-151.13; 143-151.16. 

.0705 APPLICATION: WHERE MADE 
AND FEE 

The completed application and all required 
supplementary' information shall be returned to 
the Board at P.O. Box 26387, Raleigh, North 
Carolina 27611. Each apphcation (whether for 
one or several standard certificates for a single 
individual) shall be accompanied by payment of 
a teft twenty dollar (i 10.00) ($20.00) fee, cither 
in cash or by a check made payable to the North 
Carolina Code Officials Qualification Board. 

Statutory Authority G.S. 143-151 .16. 

.0706 REQUIRED Ql AI.IIICA IIONS: 
TYPES AND LEVELS 

(a) QuaUfication Levels 

(1) With respect to all types of code enforce- 
ment officials other than code administra- 
tor, those with Level 1, Level U, and Level 
III certificates shall be qualified to inspect 
and approve only those types and sizes of 
buildings specified in the tabic. 

(2) Limitation on MiiKimum maximum size 
of buildings for Building, Llectrical, Me- 
chanical, and Plumbing inspectors. Levels 
L II and III: NO CIIANGL IN TABLE 

fb) ift ttii cai . tfLi ' . i . 'h e r t* thow rogukitions r e quir e 
a r . upporting lottur, «h4 luttcr i i hull be notaii/cd, 
iihall iitato the author' - .i quulificationo (i.e., ' . ' ■ hat 
typ e afl4 Ic ^ ol ef coilificate w^ liceiir .e he holdf . ), 
shall i . tatc t4*Ttt the appliciint h*i ' . sorkcd undor 
his direct f i uper\ir i ion ftw a specifiL'd period »f 
time, a«4 -. hall r e comm e nd CLMtification »f the 
applicant as a spocifiod type aH4 lev e l ef inopc'ctor 
upon L . ati!; . faction e4 othcT ruquirc'd quiillficiitiono. 
f«T> Codo Administrator. A r . tandard curtiricatu, 
code adminif . trator, >. hall be i '.ii ued te- rt»y appli 
ea+vt 'a4+» meotr . att »f the ciitLMia f4-^ (4fr f^Hr (4) 
aft4 ("^ »f thi* Paragraph: 

f4-)- proside - .i curtilicution by a ei+y ef county 
manager e+ L'lo i k that the applicant » the 
admini 'i trati' i c head &i "code 

onforcemuat" a* dofinod by G.S. 
1 I.] 151.S(a)(.V) a* aft employee »f that 
local g(n e rnm e nt h+ certification by the 
head ef the I'ngineering aftd Buildmg 
Codes Di' i i ' .ion t+f the North Carolina 
Department h+ hv . urance that the iippli 
cant IS perlorming "cod e ealoriL ' mi. ' nl" h+f 
a state JepailnK ' nt i-vf agency: 
(-3^ complete ' , '. hurt coiu '. e - j L . pecilied by the 
BcKud e+ e qui' . dl e nt ctuui i e ' j appro' < ed by 
the Board Itho ' ie exempted from exam 



ination by G^ 113 151.13(f) mwAr have 
paosing grade eft r . hort coursQfi|; 

f^ makes a paosing grade &ft a ' ■ vrittan exam 
ination adminiotorod by the Board [ftet 
required »f those oxomptod from e xam 
ination by G.^ 113 151.13(f)|; 

(4) possesses a standard certificate as a buUd 
iftg inspector; a plumbing inspector; a 
mechanical insp e ctor; ef a» electrical ifi- 
spoctor; aft4 

(4) provides documentation that he poooossoo 

Cr TTTTTTTTTTTTTTT CTT cT rTTT^TT TT^TTTTCT C^TTItTTTTTTTrT yTTT 

equival e nt approved by the Board) aft4 

has ha4 at least ese continuous year's e«- 

porionce sup e n'ising inspections fof the 

stat e , a e+tyr ef a county insp e ction de- 

partm e nt. 

(4^ Building Inspector, I evel ir A standard 

certificate, building inspector, I e' l ol 47 shall be 

issued te afty applicant vrhe- meets att ef the gh- 

tefia f4-h (^ (^ aw^ (4^ i» this Paragraph: 

f44 pro' . ides c e il ilicat ion by a eity ep county 
manager ef clerk that the applicant is 
p e rfomiing "code enforcement" as defined 
by GtSt M3 151.1S(a)(3) as aft employe e 
ef that local go' . ernment ef certification 
by the head ef the I'ngineer aft4 Building 
Codes Division ef the North Carolina 
Department ef Insuranc e that he is pet^ 
forming "code enforcement" fof a state 
departm e nt ef agency; 
completes short cours e s specified by the 
Board ef equisalent cours e s appro' . ed by 
the Board |thoso exempt e d from exam 
ination by Gr^ I 13 151.13(f) must have 
passing grad e eft -. hort courses); 
makes a passing grad e eft a i i vritten e xam 



f^ 



f^ 



ination administered by the Board fftot 
required ef thos .e exempted from exam 
ination by Gt^ 1 13 1^1.13(f)|; aft4 
(4) pro' i ides documentation tbrtt he p(jss e ss e s 
a minimum ef a high school education (ef 
equi' i alent approved by the Board) i^^ 
e«e ef the alternative education aft4 es- 
perience c[ual i lications fef aft equi' . alent 
appro l i ed by the Board) listed b e low: 

(A^ hav e completed at least e«e 'r*^^^ ef 
technical ef trade school training ef aft 
apprenticeship program ift building con 
struction; ef 

(fr^ have had at least one half ) ears' work 
under direct '. uper' i ision ef a standard 
certified building in '. i-'ector. f-evel h ff ef 
H4 Vrtth a supporting lett e r from such s«- 
per'i isor; ef 

fC4 have a Ncrlli Carolina licen ^.e as a 
building contracttu" ' . vith limited licens e 
(individuals ' . vhose liceni i e is eft inactive 



1200 



4:24 ISORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



status shall provid e dooumentation from 
t+t# contractors' Roard); ef 

yjLrj I lu. T W trisTT ctr IwilJjl CtHt? V trill Or L'liiiulli^ 

coiistRiotion ef general inspection QxpL ' ri 
e no e working und e r » building contractor 
with liinitod liconso m North Carolina; »f 

(B^ havo boon oortifiod under y«* aet- as aft 
olectrical insp e ctor It » mochanical ifi- 
opootor It ef » plumbing insp e ctor \ - have 
ha4 at leart e«e yeaf as ouch inopoctor, 
afi4 hav e oomplotod at l e ast 60 contact 
hours »f instruction *» building e©fi- 
struction afi4 North Carolina building 
codo coursoo approved by Ae Board; ef 

fp) havo h«4 at- least twe- years' oxperienc e 
as aft activ e principal t» a homo building 

I f -\ >-> o 1 ■."> Vt •-■ .-1 •-» ♦ 1 . "!■-» ft 1 1 1 : i-y j^ .^ ji t 1 »i I 1 .-> 1 1 t- 1 -.-f-i «-i~ 

1 TJ 7 I lU T V. rTTTO lit rCTTTTT I T' I.' L^MlllIILI'Jl.lJ T l-UI J 

e xperience Ln! . pecting constaiction ef 
dwellings aft4 similar sit'.ed structures fef 
a eity ef county; ef 
ft4^ ha' i o had at l e ast two years' oxporionce 
as a subcontractor ift t4*e building trades 
e* ' I ' l 'orlc » building con ii truction under 

t t~i ^ ' ' ■ * f. .n-l ' 1 L - 1 J- 1 ^^ J -1 f -1 ^^ / -1 ^'t^ , ^ I~l I l i 1 . I . t «- l l ; l-n-y Vl '1 f 

at least thieo years' exporiencQ if* tjae 

building busin e ss. 

(e^ Building Inspector, Level i+r A standard 

cortiricato, building inspector, I-O' i ol Hr shall be 

issued te- aftv applicant V i ho meets aU &f the 6«- 

tefW: f44T f^ (tH aft4 (-H Ht this Paragraph: 

f44 provides c e ilification by a eity e* county 
manager t>F cleric that the applicant is 

by G-:^. To 151.S(a)(j t ) as aft e mploy ee 
ef thitt local gosenimont ef certification 
by the head »f the lingineering aft4 
Building Codes Di' i ision ©f the Noilh 
Carolina Department »f Insurance that 
he is performing "code enforcement" f&f 
a state department «+ agency; 

{¥f completes short coursoo specified by the 
Board »f equivalent cours i os approved by 
the Board |those e xempt e d from exam 
ination by (}.S. 1 IJ 151 . LJ(f) must have 
passing giade eft short cuurses|; 

(4^ makoo a pasr . ing grail e eft written oxam 
Illation a 1.1 ministered by the Board fftet 
recniiiecl ef those exempted from exam 
mation by Qr^ M3 151.13(01; a«*t 

f-14 pro' i ide i ' . documentati(m that he p()osesses 
a minimum ef a higli ^ i cliool e ducation fef 
e quivalent a|">proved by the Board) im^ 
efte ef the allernati' . e education aft4 e^t- 
perience qualifications fet aft equivalent 
approved by the Board) listed below: 



fA^ be a North Carolina liconsod engineer 
whose oxporionco has ftot buon ift the de- 
si^ &f inspection »f building! . ; e* 

(ft} hav e completed at least tvre- years ef 
technical ef university training ift the fieki 
ef eivil e ngin e ering bf building con 
otruction technology e* aft approved 
four y e ar non t e chnical degree aft4 ha4 at 
least twe years ef design, in i. tallation ef 
inspection oxporienoo worlcing under a 
c e rtifi e d building inspector H- Bf J-Hr a h- 
c e ns e d engineer, ef a hconsod building 
contractor having at least intermediate li- 
conoo; e? 

(€^ hav e boon c e rtifi e d under this aet as a 
plumbing iiT . pector Hr a mechanical ift- 
sp e ctor Ht ef aft electrical inspector Hr 

l^^^^^^i 1^^^^^ ^^t ^^^^^^^ ^l^j-^^^ ^^^^^-^ '-j J."* r^i » ^^ V-n 1 r-\ 

^^T^^^w ^^t^^r t^t ^^^^^^T ^^^^^^^7 ^^^t^^^ LX^ ij^^^TT rx^^ 

opoctor, aft4 have completed at l e ast on e 
half yeaf ef building construction 
technology aft4 North Carolina building 
code courses approved by the Board; e+ 
(©^ have a licenoo as a building contractor 
V i ith experience ift medium SiT^e buildings 
with- limited ef intermediate hcens e (Indi 
viduals s' . hose lic e ns e is eft- inactiv e status 
shall prosido documentation from the 
contractors' Board); e+ 

lation ef inspection exp e ri e nc e working 

undor direct supersision ef a certified 

building insp e ctor -H- e* -144 ef a building 

contractor with intemiediate license i» 

North Carolina with a supporting letter 

from !. uch supervisor; &f 

fp^ have had at least fo«f )ears' experi e nc e 

inr . pecting con '. truction ef medium suiod 

buildings fevf a eity ef county i» North 

Carolina und e r a jeb description v i hich 

contains education aft4 experience »- 

quirem e nts equivalent te- afty ef thos e 

abo' i o; et 

{G^ have been certified und e r this aet as a 

building inspector h bas e had- at least 

three years' experience approving plans 

aftd making inspections as such mspector, 

aft4 have completed at least one half yeaf 

ef building constructicm technology 

courses approved by the Board. 

ff^ Building inspector, -hevel H-h A standard 

certificate, building inspector, h e ', e l 11+ shall be 

issued te- afty applicant who meet! , ail ef the eri- 

tefia f+ir (^ f^ a«4 f4^ i* this Paragraph: 

(4-)- provides certification by a eity e+ county 
manager e* clerk that the applicant is 
performing "code enforcem e nt" as defined 
by GtSrr 1 13 151.y . (a)(.^) as aft employ ee 
ef that local uo'iomment e? certification 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1201 



PROPOSED RULES 



hf the h e ad »f the Onginooring afi4 
Building Codoo Divi ' jion ef t4*e North 
Carolina Dopartmont %i Insuranc e that 
applicant is p e rforming "cod e e nforce 
ment" fop » stat e d e partment ©f ag e ncy; 

(3^ complotoo short cours e s opucifiod h^ the 
Board ef oquivalont courses approved hy 
the Board [thooo oxomptod from oxam 
ination hy GrS^ 1 13 151.13(f) must havo 
passing grado ew- short coursus|; 

(4) makos a passing grado »» a written osam 
ination administorod hy the Board ffte4- 
roquirod »f those exempted from exam 
ination hf fe^ 1 13 151.13(0|; aft4 

(4) provid e s documentation that he pooc i ossos 

equivalent approved by the Board) afi4 
»fte »f the alternative education aft4 es- 
periencQ qualifications fe* a» equivalent 
approved hy the Board) listed below: 

fA^ he a North Carolina licens e d engineer 
»F architect whoso pre professional quali 
fication experience aft4 professional prac 
tiee was ht the architectural, structural, Bf 
fife protection design ©f inspection ef 
buildings aft4 wh© cuiTontly is specialiidng 
ift architecture ef eiv+i &f fife protection 
ongineoriiig; ef 

fB4 have completed at least fe+tf >oars ef 
technical »f university training i» the fiei4 
&i efv4 e* archit e ctural e ngine e ring awd 
have ha4 at least »fte yeaf ef building 
oonstiTjotion »f inspection oxporienco 
working under a c e rtified building inspec 
t&fr levei -H+r a North Carolina licensed 
unlimited building contractor, at least at 
the levei ef supervisor Bf journe)man 
building trad e s craftsman level aft4 wt fe- 
spon i. ible charge »f a v44e variety ©f typos 
aft4 larger si^es ©f building projects; ©f 

fG) hav e completed at least tw©- years ©f 
technical ©f university training i» the fiehi 
©f eivii ©F architectural engineering a«4 
have ha4 at least three years ©f building 
constiTiction, design, ©f inspection experi 
ence ' . ' . drkiiig under a certified building 
inspector Wr a Ijceniied ci' i il ©f fi4e pro 
tection e ngineer, ©f aft unlimited licensed 
building contractor, vsith at least ©se yeaf 
ift respou 'i ible charge ©f a wid e 'lariety ©f 
types aft4 larger siz e s »f building^ . ; ©f 

(-R^ have been certified under this aet as a 
mechanical insp e ctor H47 a plumbmg tft- 
speclor 4Ht ©f a» electrical in i. pector U^ 

1 ill T s? rTTTTT If r iiril ,'i rTTTTn T pill ? ui 't J.I Li C 1 1 i_ crl 1 1 

fie4 inspector, aft4 have completed at least 
©fte veaf ©f building constmction tech 



nology^ cours e s approved by the Board; 
©f 
, f^ have a current liconso as a building 

©f larg e sige buildings witfe unhmited h- 
c e nse ift North Carolina (Individuals 
V i 'hoso licens e is ©ft inactive status shall 
provide docum e ntation from the contrac 
tofs^ Board); ©f 

i^^^i t-i ■-» I r/-\ Vi -~i H -tt 1^^^^^ T^i»^£ \T^^^^c .-1 r .— j-^ r\ 

\i. J I lu. ? \j I IU.U III 11-u.Di r^mr t \-u.r^ l/i (-i_'ii 

under direct supervision ©f a certified 
building insp e ctor W ©f a building con 
tractor witb unlimited liconso ift North 
Carolina, at l e ast tvr© y e ars ©f which have 
been performed ift responsible charge ©f a 
variety ©f typos aft4 larger siaos ©f build 
iftgs Vrith- a supporting letter from such 
suponisor; ©f 
{G^ have boon certified und e r this aet as 
building inspector ih hav e had at l e ast 
fottf years' experience approving plans 
afi4 making inspections, aft4 have com 
plotod at l e ast ©«e yeaf building con 
struction technology courses approv e d by 
the Board; ©f 

(11^ I 111 T \J I ITlvl til 1 l,U. J l 1 1 T U \~\ ' 1 1 1 H I UV \.l-J T VTJ-1. J 

experience insp e cting the construction ©f 

a svid e ' ■ uriety aft4 typ e s ©f larger si/.os ©f 

buildings working f©f a eity ©f county ift 

North Carolina under a }©fe description 

which contains education aft4 oxporienco 

requirements ec|uivalont t© afty ©f thoso 

abov e . 

(g^ Plumbing Inspector, Lev e l h A standard 

certifioato, plumbing inspector, level 47 shall he 

issu e d t© afty applicant who meets ah- ©f the efi- 

tena (4-)7 f^ fri^ aft4 f4> ift this Paragiaph: 

("I") provid e s certification by a eity ©f county 
manager ©f clerk that the applicant is 
performing "code enforcement" as defined 
by Gt^ M3 151.8(a)(3) as aft employee 
©f that local government ©f certification 
by the h e ad ©f the rngineering aft4 
Building Codes Di' i ision ©t the North 
Carolina Department ©f Insurance that 
the applicant is peifonning "code eft- 
forcemont" fof a stat e departm e nt ©f 
agency; 

compl e tes short cours e s specified by tfee 
board ©f equi' i al e nt cours e s approved by 
the board [thos e e x e mpt e d i\om examina 
ti©ft \^ G^ M3 151.13(f) Fftttst have 
passuig giade ©ft short courses|: 
makes a pas ;. ing grad e ©» a wntten exam 
ination administered by the board fft©t 
required ©f those exempted fiom ejuim 
mation by G.4;^ 1 13 151.13(0]; m^ 



(^ 



m 



1202 



4:24 NORTH CAROLIl\A REGISTER March 15, 1990 



PROPOSED RULES 



(4) providof f documentation that- be por . r . or i r i os 
» minimum »f a high r . ohool education 
L ' xpL ' ri e nu B quulifioations fe* »» equis'ul e nt 
approved hf t4w hoard) li '. tt ' d b f low: 
(tV)- havL > compk ' tL ' d »♦• Icui i t »ftt» year ef 
technical ef trad e f . chool training (*f af»- 
prcnticoi i hip program ift plumbing; ef 

I 13 \ li^pliii '1 i 1 .1 •-» t~ t ■•-\ «-i , > 1-1 ■ I 1 T 1 -, l-l f ^~ t 1 ■ j-i »■ 1 ■- ]»j^^^l£ 

^^^^j T^TT^^^ C^t ^^^^^^t \^T^^^^T^^^^T ^^^^^T^^T ^^^^^^^^ ^^^^^^^^r 

direct ' / . uponiL i ion ef L i lundard cuitLriud 
plumbing ini . pL'ctor, 1 ool ir H evf i44- with 
» i . upporting lett e r from such sup e rvisor; 
»f 

fG^ havo a North Carolina lioonfio as a 
plumbing contractor (indis ' iduah i whose 
licL'n !' L ' Hi t-vft- inactiv e status r . hall provide 
documentation from the contractors' 
board); «+ 

ff^ have ha4 at least eae year t»f plumbing 
installati(m ef plumbing insp e ction enpo 
rienc e working under a plumbing con 
tractor m North Carolina; Bf 

(B^ have been ceilifiod under t+t+s aet- as a 
building inspector 4-r a«- electrical inspector 
ty ef a mechanical inspector \i hav e ha4 
at- least e«e veaf as such inspector: aft4 
have completed at- least ^ contact hours 
»f instruction h+ plumb i ng conr . ti-uction 
aftd North Carolina building code courses 
approved by- t4+e board; »f 

(4-^ have h«4 at- leai . t twe- years' experience 
ift plumbing installation; e* 

{G^ have hi^ at least tw-e continuous years' 
experience Lnspecting plumbing instaUa 
tions t*f dwelling ' . , at+d similar s . i/.ed struo 
tures fe* a eity ef county. 
fh) Plumbing Inspector, 1 evel 14t A standard 
ceildlcato, plumbing inspector, L evel H- shall be 
iss i ued to- a«¥ applicant vv ho meets att ef the eri- 
teria H-h (-3^ f:i^ aH4 f+) » th*^ Paragraph: 

(-1-^ provides ceilification by a etty »f county 
manager »f clerk ttiat the aj^plicant » 
performing "code entorcemenl" a^. defin e d 
by Gt^ 1 l-"i 15I.V i (a)(3) a* a«- employee 
ef tbat local government e* cert i fication 
by the head tvf the bngineering a«4 
Building Codes Division &f the North 
Carolina Department rf Insurance that 
t]^ applicant ts periorming "code ew- 
forcement" f»f a state department e* 
agency; 
fi) completes short courses specified by the 
board Bf equivalent courses approved by 
the board [those e xempt e d from examina 
t+e«- by G-Sv 1 1.^ 15I.l.'t(f) Hwst have 
passing grad e eft short cour !i es i |; 
(4) mak e s a passing gi'ade eft a written exam 
mation administered by tbe board [ftet 



required »f thos e exempted from oxam 
ination by GtJVt 11,1 151.1.^01; aft4 
(4) provides documentation that be poss ie ss e s 

Cr ITTTTTTTTTTrTTT I ' 1 CI III IL,1 T Llt,lIl".'I CnTTTTTmTTTT ^ l ' I 

equivalent approved by the board) aftd 
»fte ef the alternativ e education iifvi e«- 
perience qualifications f»f aft e quival e nt 
approved by the board) listed below: 

(-A^ be a North Carolina licensed engineer 
whose experience ha* ft»t been ift the de- 
sigft H+ ins . p e cl i on f4' buildings; e* 

(4^ have completed at leas i t two- y e ars ef 
technical »f university training ift the field 
ef m e chanical engineering ef aft approv e d 
four y e ar n(m t e chnical d e gr ee aft4 hav e 
ba4 at l e a ;. t tw+v y e ars o+" d e sign, iu '. talla 
ti(.)n, »f iu ' ipection e xperienc e working 
under a certif i ed plumbing inspector -H- «* 
44+7 » licensed engineer, »f a licen ; ied 
plumbing contractor; e* 

f4^ have been certified under thi* aet as a 
building in '. pectc^r -Hr a mechanical ift- 
spector Wt Of aft electrical inspector H-7 
have ha4 at least three years' exp e rience 
a« such inspector: aft4 hav e completed at 
l e ast one half yeaf €vf plumbing c(^n 
struction technology aft4 North Carolina 
build i ng code cours e s approved by the 
board; Bf 

fO^ hav e a licens e as a plumbing contractor 
with exp e ri e nc e ift m e dium s«e4 buildings 
(individuals w'hos e lic e ns e is o« inactive 
status shall provide documentation trtmi 
the contractoni' board); of 

(4-^- have ha4 at least three years of in -. tal 
lation Of inspection experience w\)rking 
under direct supervi -i ion of a c e rtifi e d 
plumbing in '^ pector H of -14+ ot a plumb 
iftg contractor ift North Carolina with a 
supporting letter trom such ■ iupervisor; of 

(4^ have ha4 at least fo«f years' experience 
inspecting plumbing instaUations of Hie- 
dium sii'.ed buildings fof a «4y of county 
ift North Carolinii under a fob des . cription 
which contains education aft4 experience 
requirements equivalent to »b^ of those 
above; of 

fG)- hav e been certified under this aet as 

plumbing inspector h have had- at l e ast 

three year;/ experience approv ing plans 

»i^ making iu '. pections as such m '^ pector; 

aft4 hav e compl e t e d at l e ast on e half yeaf 

of plumbing const met ion courses ap- 

proved by the board. 

(+f Plumbing Inspector. 1 ev el +++t A standard 

certificate, plumbing inspector, I ev el +++t S i hall 

be issued to afty applicant who meets aff of the 

criteria f+-h f^ (^ aft4 f4-) m th+s Paragraph: 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1203 



PROPOSED RULES 



f+) pros'ideo oartifioation by a- eity &f county 
munagur »f dork tbrri- the applicant is 

r^^^TTTrTTTTTTT^ T,^TTIV Ul IIT^I ^_^ I I I^T H CC^ LH^I II IVU 

^r' G.S. M3 151.8(a)(3) as a** omployoo 
»f Aat- local govommont »f cortification 
by tbe huad »f tbe Enginooring aft4 
Building Codos Division »f tb« North 
Carolina Dopartmont ei Inourance tbat- 
the applicant is porfonrting "codo »«- 
forcomont" fof a stat e department e* 
agency; 

(5^ coinpl e t e e . short coursoo spt ' oili e d by Ae 
board et oqui' . cdt'nt coursi's approsod by 
tbe board |thc)SL' uxomptt ' d from cxamina 
t4o» by GtSt 113 151.13(1) HHist- haw 
passing giado »«■ short courson|; 

(^ makoo a passing giado &«■ a ' . s-ritton oxam 
ination administu'rod by tbt* board f»»4- 
requir e d ef thos e oxomptud from exam 
ination by O^ M3 151.13(f)|; aR4 

(4^ providoo documentation tba4- be posoossoo 

Cr rTTTTTTTTTOTTT TTT CT III Jl^l 1 Ln_ I IV V..' I ^_ULH_U11U1I yTTr 

equival e nt approsod by the board) aft4 
tM+e of t4+e altornatiso education a«4 es- 
perienoe qualifications fef as- equivalent 
approved by tbe board) listed below: 

(A^ be a North Carolina lic e ns e d engineer 
whoso pre professional qualification e?i- 
perience mvA professional practice was ift 
tbe plumbing design of inspection e4^ 
building ' . . ȴr<^ ssho currently is specializing 
ift m e chanical engineering: ef 

(4^ have completed at- least fottf years ef 
technical t+f university training ift tbe fit*i4 
»f m e chanic(d engineering ^b^ hav e ba4 

■1 ♦ Ij^ii^^ ."t r^ n 1 - , A ^ «• /-I t >-vlll>->-\l~n»Ti-i .-• j-^ »T n- t «-T 1 , ' t 1 ."1 r-\ 

e* inspection experience v . orking under a 
certified plumbing inspector. Los el 4447 a 
North Carolina licensed mechanical engi 
neer, ef a North Carolina licensed 
plumbing contractor, in -. talling plumbing 
ift larger sized buildingr i , at- least at- t+H* 

1 1 t' ■ J » I r^ r 1-1 1 1-^ , n-1 ■ < L /1 1- ■-> »- ijti ifft.n ■»->i'in t-n i 1 1 ■ i i ti i » 
(V T V r TTT LT 1, r I 'V I I I . H ' I ^rr jlJtll IITTy 111 LI II I. ' LI I IVl 1 1 1 J^ 

trades craftsman level aH4 ift responsible 
charge H4^a wide ' ■ anety ej types aft4 larger 
sii'O ' .i ef building projects: Bf 
fGf ha^ ie completed at- least tw«- years rf 
technical e* university training ift tbe l+eW 
»f mechanical engineering im4 base ba4 
at- least three years »f plumbing con 
struction. design, in '. lallation. Hf ift- 
'. pection expeiience ' . sorking under a 
c e rtified plumbing inspector -W-;- a liceu ' . i od 
mechanical engineer, ef a licens . ed 
plumbing contractor. iiT ' lalling plumbing 
ift larger sized buildings, wilh at- least t+fte 
ye»f ift r e sponsible charge (4f a wide 



ety »f typos aft4 larger sizes ef building 
projects; ©f 
(©) havo boon c e rtifi e d und e r this aet- as a 
mechanical inspector \i\-; a building ift- 
spoctor 1447 e* »«• e l e ctrical insp e ctor -^Hf 

irui TT7 1 luvj ur i l, u j i i \) lli i l,u.i j cttt rrrrcTT i^' lj i m 

»fte yea* »f plumbing construction tech 
nology courses approved by tbe board; e* 
(4+^ have a current license as a plumbing 
contractor wttb licens e ift North Carolina 
witb exporienco ift plumbing systems »f 
large buildings (Individuals vs ' hos e licens e 
is »ft inactiso status shall provide doc 
um e ntation from tbe contractors' board); 

I t l\ V-t -W ■ .■L 1-1 ■ ■ J 1 ■ t * 1 , \ •! .'* T i--» 1 IT- t ■■ H. «-l- r~iL T J> J- 1 »-t 

\T J I rtTT \J rTTTTT CTT rCTTTTT rTTTIT T VTI I J CT tT 'IT 

under direct supenii . ion ef a certified 
plumbing inspector H4 »f a plumbing 
contractor with a license ift North Caro 

I < «"t ■ t t » < ■ A^ 1 ■ •\-t n- .•it t 1 - 1-1 1 I- It !"'■■'■■> 1~. , t Jt-n tiLij-^ 

1 1 1 1 11 , nr^^ J V-Tii J rTT ti iiil.ii i ili t kj i "i- \_ i i i. ■ l. i 

fonned ift responsible charge »f a variety 

t*f typos aft4 larg e r siz e s t4" building pfe- 

jects V i ith a supporting l e tter from s . uch 

supervisor: »f 

fG^ hav e been certified under tbis aet- as 

plumbing inspector -Hr have ba4 at- least 

t*H*f years' experi e nc e approving plans 

aft4 making in '. pections: aft4 have com 

pl e t e d at least efte year plumbing con 

ji truction technology cour ' ies approved by 

tbe board; b* 

(44-^ have ba4 at least five continuous years' 

experience iu '. pecting tbe plumbing sys- 

t e ms ef a wide variety aft4 typ e s ef larger 

r . iz e s ef buildings working fof a eity Bf- 

coiinty m North Carolina under a }»b 4e- 

l icription which contains education aft4 

exporienco requirements equivalent te- afty 

Bi thos e above. 

(j4 Mechanical bT . pector, I evel -b A- standard 

certificate, mechanical iiTipector, 1 ev el -b shall be 

issu e d to- afty applicant who meets ail- »f tbe eri- 

teria (4^7 (^ (3) aft4 (4^ ift tbis Paragraph: 

f44 provides cortification by a eity t+F county 

manager ef clerk tbat tbe applicant is 

perfoiTning 'Yxul e enforcement" as d e fin e d 

by Grr^T 113 151.S(a)(3) as a» employee 

»f tbat local government ©f certification 

by tbe head »f tbe I'ligineering aft4 

Building Code '. Div ision t4 tbe North 

Carolina Deiiartm e nt o+ liT i Uiance tbat 

tbe applicant » peiiorimng "codo eft- 

forcement". fo* a state department ef 

ag e ncy: 

(4^ complet e s short courses specified by tbe 

board m- equival e nt courses approved by 



1204 



4:24 NORTH CAROLINA REGISTER Match 15, 1990 



PROPOSED RULES 



^r^ board [thos e e xempt e d from exumina 
tieft by Gt^ M3 151.13(f) Hwst hm% 
pa'ir . ing grad e »ft nhort oouri i uu]; 

(4^ mak e s a passing grado »» a ' ■ ' . ritton e xam 
ination administorod by tbe board [«©*■ 
r e quir e d ©f thoso oxomptod from oxam 
ination by G.^ M3 151.1.1(01; aft4 

f4) pros'ides dooumontation t4w*t- be possoooos 

oquisalent appro' i cd by tbe board) aft4 
e«e ef Ae altomativo oduoation afi4 ejt- 
porionoo qualifications f»f aft oquivalont 
approved by t4» board) Listed bolow: 

fAr^ havQ complotod at least &f^ ysaf ©f 
technical &f trade school training ef ap- 
prontioonhip program » building tfte- 
chanical oquipmont; e* 

fft) haso at- least one half years' V i ork undor 
direct supeP i ision e4^ standard certifi e d 
mechanical inspector, lesel J7 H e* H4- 
Mritb a supporting letter from such super 
' ■ isor; ©f 

(G^ hav e a North Carolina license as a me- 
chanical installation »f inspection experi 
oncL< ' . ' l orldng undor a mechanical 
contractor ' . sith a i44 license ift North 
Carolina; ef 

(©} have been certified undor t4M* aet- as a 
building inspector h a plumbing inspector 
•I7 ©f aft electrical inspector it ba¥t» ba4 a4- 
l e ast ©ft» y<*af as such msp e ctor; aft4 have 
complotod at least 40 contact hours ©f ift- 
stiTiction ift mechaniccJ construction aft4 
North Carolina building code courses ap- 
proi i od by tb*» board; ©f 

(E^ havo h^ at least tw© y oars' exporionco 
i» mechanical installation; ©f 

fp) ha* ! e ba4 at least tw©- continuous year's 
experience insp e cting m e chanical in ^. talla 
tions ©f dwoUings aft4 similar si/.ed stnic 
tur e s fe* a eity ©f county inspection 
department. 
fie^ Mechanical hispeclor, L e ' ie l Hr A- standard 
ceilificate, mechanical inspector, I ev el 447 shall 
be issued t© awy applicant v i ho meets aU- ©f tbe 
criteria f4-h f3>7 (4f aft4 f+) ift tbw Paragraph: 
f^^ prosidos certification by a etty ©f county 
manager ©f clerk that tbe applicant is 
performing "code enforcement" as defined 
by G.S. 1 13 151.S;(a)(3) as aft employee 
©f tbat local gosernment »f certification 
by the liead ©f tbe Fngineering ft«4 
Building Codes Divi '. ion e+ tb^* > . "oilh 
Carolina Department ©f Insurance tbat 
tb» applicant is p e iiorming "code eft- 
forcement" fof a stLite depailinent ©f 
agono)'; 



(3) completes short courses sp e cifi e d by tbe 
board ©f equival e nt cours e s approved by 
tbe board [thoso exempted from e xamina 
tioft by Gt^ M3 151.13(f) »H*st haw 
passing grado ©ft short courses]; 

f^ m alios a passing grado ©» a written e xam 
ination administ e r e d by tbe board [ft©t 
required ©f those exempted from exam 
ination by G.S. M3 151 13(f)[; aft4 

{4rf provides documentation tbat be possoooos 

equivalent approved by tbe board) aft4 
©ft© ©f tb© altemati' . e education aft4 es- 
perienco qualifications f©f aft equi' i 'alent 
approved by tbe board) listed below: 
fA^ be a North Carolina registered onginoor 
©f arcliitect whos e exporionco bas ftot 
been ift the design ©f ins . pection ©f build 

fS) have complet e d at least tvr© years ©f 
tochnioal ©f university training ift the field 
©f mechanical engineering e* aft approved 
four year non technical degree aft4 base 
ba4 at least t-w©- years ©t design, installa 
tion, inspection experience Vforldng under 
a cortitied mechanical inspector 14 ©f iH-; 
a licensed onginoor, ©f a licens e d m e chan 
ieal contractor having at least a 1+2 ©f 144 
License; ©f 

fG^ have been certified under this aet as a 
building inspector 14t a plumbing inspoc 
t©f 147 ©F aft electrical inspector Ht have 
ba4 at least three years' experi e nc e as such 
inspector; aft4 bave completed at least 
one half )ear ©f mechanical construction 
technology aft4 North Carolina building 
cod e courses approved by tbe board; ©f 

f&i have a lic e ns e as a mechanical con 
tractor with experi e nc e » medium sb^ 
buildings w4tb- a bb3 afi4 144 license (Indi 
viduals ' i shose License is ©ft inactive status 
shall pro' i ide documentation from tbe 
contractor^ i ' board); ©f 

(4i^ have ba4 at least thr ee years ©f instal 
latiun ©F inspection experience ' ■ sorkmg 
under direct sup en i si on ©f a certified hw- 
chanical inspector 14 ©f 144 ©f a mechan 
ieal contractor v . ith 144 afhi 144 license ift 
North Carolina wfA a supporting letter 
from S i uch super' i isor; ©f 

(4^ hav e been certified under this aet as 
mechanical inspector I-;- have ba4 at least 
three years' experience appro' . mg plans 
afhi making in '. pections as such inspector; 
aft4 hav e completed at least one half yeaF 
©4 mechanical coiV i truction technology 
courses app lined by the board; ©f 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1205 



PROPOSED RULES 



inspecting m e chanical inr f tallationc i ei ««e- 
dium sii'.ed buildingo fof » etty »* county 
ift North Carolina undor a j&fe dascript i on 
which contains e quival e nt education afi4 
oxporionco roquiromonts oqui' . alont odu 
cation a«4 oxporionco roquiromonto 
oquivalont to- any &f thono abovo. 
fl^ Mechanical Inopootor, L <? v e l Wr A standard 
certificat e , mechanical innpoctor, Ixivol H-l- shall 
b« issued to aoy appUoant wW moots all sf the 
criteria f4^ (3^ f^ aft4 (4^ m Ai* Paragraph: 
(4^ pro' i idou certification hf a eity e* county 
manager »f olurk tfeat- tfee applicant i« 

^L Q^ M3 151.8(a)(3) as aft omployoo 
»f thrtt- local gosenmiont ef certifioation 
by the head ef tl+e luigineoring aft4 
Building Codes Division ef the North 
Carolina Department e4" Insuranco tbat- 
tfee applicant is p e rfonning "cod e eft- 
forcomont" fof a otato dopartmont »f 
agency; 

f3) completes short courses specified by tbe 
board ef equivalent cours e s approved by 
tbe board [those exempted from exumina 
U»ft by Gt^ M3 151.13(f) Hwwt b«t¥« 
passing grade eft short courses); 

(5) makes a passing grade &ft a written exam 
ination administered by tbe board [f¥^ 
required b( those exempted from exam 
ination by Gr^ M3 151.13(01; aft4 

(4) provides documentation tbat- }» possoosoo 
a minimum ef a high school education fef 
e quivalent approv e d by tb# board) aR4 
»fte (4 the alternative education aft4 es- 
perionce qualifications fef aft equivalent 
approved by tbe board) listed b e low: 
(A^ b» a North Carolina licensed engineor 
whos e pro professional qualifications, es- 
perienoe aft4 professional practice ¥r»s tft 
tlw mechanical design e* inspection »f 
buildings imd vsho cunently is spocialiiiing 
ift mechanical engineering; ef 
(4^ haso completed at- least fo+tf years »f 
technical Bf univer '. ity training i» tbe 6e44 
^ mechanical construction engineering 

■^ n ."1 It ■-» T T-,-» t-i "-i I 1 ■ 1 1 1 , -1 ■-!■-- + ,-\ fi ,-k t -J 1 --1 »■ i-» r t-»-i i-v 

ohanical construction &f insp e ction oxpe 
rience working under a certified 
mechanical inspector. I es el H+t a North 
Carolina licensed mechanical engine e r, e* 
a North Carolina lic e nsed mechanical 
contractor '■ s ilh bH-r 144 144 liceu '. e, at 
least at- tb«» lo' i oi »f sup e rvisor Bf journey 
man building trades craltsman les e l aft4 
ift responsible charge »f ' ■ vid e vari e ty t+f 



typos afi4 larger saes ef building projects; 

. {G^ havQ completed at- loast twft yoaro ef 
technical »f university training j» tbe 6#14 
e( mochcmical construction engineering 

chanioal construction, design, et- m- 
spection e xp e ri e nc e working und e r a 
c e rtifi e d m e chanical inspector Hi-; a li- 
censod mechanical engineer, ef a H4t J+St 
m lic e nsed m e chanical contractor, with 
at- loast »«» y«H= ift responsible charge »f 
a wide ' ■ arioty »f types aft4 larger sizes ef 
buildings; ©f 

(©)• have boon c e rtifi e d und e r t4*is aet- as a 
building inspector H4t a plumbing insp e c 
tof Uh ©* aft electrical in -. p e ctor H4f have 
ba4 at- loast four years' experi e nce as such 
certified inspector; aft4 ha' i o completed at- 
least »«e yeaf ef mechanical construction 
technology courses approv e d by tb« 
board; ftf 

ffe) bave a current license as a mechanical 

ftf largo swe buildings >vith H+r 444t aft4 
144 license tft North Carolina (Individuals 
whoso license is eft inactive status shall 
provid e docum e ntation from tb« contrac 
tors' board); e* 

under direct supersision et a certified »**»- 
chanical inspector H4 t+f a mechanical 

f/^A rt f f-l J-' t /-^ «- 1 1 ■! f 1-1 111 1 1 f • t T-» ■■ I lit li.'/in •T'^-i ■ »-> 

C^TTTTTTT^TTTr TTTTTT 111, I I _ , cTTTO TTTT TT^^mTT^ 1_1 1. 

North Carolina, at- l e ast twe- y e ars ef 
which have been perfonn e d ift re '. ponsiblo 
charge »f a variety ef types aft4 larger sizes 
&f buildings with a supporting letter from 
such supervisor; ef 
(G) hav e boon c e rtifi e d undor tb+s aet as 
mechanical inspector bb hav e bad at l e ast 
fe+if years' experience approving plans 
aft4 making inspections; aft4 have com 
pleted at least »«** year mechanical con 
stRiction technology courses approved by 
tbe board; e* 
(44j have ba4 at leas . t tw* continuous ) ears' 
experience inspecting tbe m e chanical sys- 
tems ef a wide vanety aftd types ef larger 
5 Laos ef buildings working fof a eity Bf 
county under a jeb description which 
contains education a«4 experienc e Fe- 
qujrements equivalent te- afty ef thoso 
above. 
f«*^ Electrical Inspecttir, 1 evel ir A standard 
certificate, electrical in '^ pector, I evel b- shall be 
ii i sued te- afty applicant who meets . aU et tbe e«- 
t«fta (4^7 (^ (^ aft4 (4^ i» tbts I'arugiaph: 



1206 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



(4^ provid e s c e rtirication hf a eity »f county 
manag e r ©f clork Aat the applicant is 

IJUl lUI IIUIIU^ *J^^U.U L.'l in./ 1 V-^ 1 1 l\j\ II U^ UV III Il.'U 

by Gt^ M3 151.8(a)(3) as aa employ e o 
ef that- local govommont e+ c e rtification 
by tbe h e ad e4^ the F.nginooring atwi 
Building CodoG Divioion »f the North 
Carolina D e partment ef Inoumnco that 
the applicant is perfonning "codo bh- 
forc e mont" fof a state department e* 
agency; 

f5^ completes short cours e s specified hy the 
board ©f e qui' i -alent courses approved by 
the board [those exempted from examina 
tieft by GrSr M3 151.13(f) Hwst- have 
passing grade »» short courses); 

(4) makes a passing grade &ft a written exam 
ination administered by the board [ftet- 
r e quired &f those exempted from e xam 
ination by Gt§t M3 151.13(f)|: afl4 

{A) prosidos documentation that he possossoo 

cr rTTTrrrTTTnTTT Ct CT 1 I1Z-J.T J*_ i l\J \J I \JKS \S\J\X\. i\JH \\Jl 

oqui' i alent approved by the board) aad 
efte ef the alternative education aft4 es- 
perience qualifications f&f aft equivalent 
approved by the board) listed below: 

(A) have completed at l e ast ©fte yeaf ef 
technical m- trade school training ef ap- 
prenticeship program i» electrical instaUa 
tieft aftd codes; ef 

(ft) shall hav e at l e ast one half year's work 
under direct suponrision ef standard c e rti 
fie4 electrical inspector, Level ir H ef itf 
with a supporting letter from such super 
visor; e* 

(€) have a North Carolina license as aft 
electrical contractor with limited restricted 
(on e family d' l ' . elling) e* limited license 
(Individuals whos e license is »ft inactive 
status shall provide documentation from 
the contractors' board); Bf 

f©) have ha4 at least efte year ef electrical 
mstallation e* inspection e xp e rience 
working under aft electrical contractor 
with hmited license ift North Carolina; »f 

(6) have been certified under this aet as a 
building inspector h a plumbing inspector 
J B* a mechanical inspector h have ha4 at 
least efte yeaf as such mspector; aft4 have 
completed at least %^ contact hours ef ift- 
struction ift electrical installation aft4 
codes aft4 North Carolina building 
courses approved by the board; &f 

fp) have at least twe \ ears' experience ift 
electrical installations; Bf 

(G) have a current license f^^ as a county 
electrical inspector issued by the Com 



mission e r »f Insurance pursuant %» G.S. 

153A 351; &f 

(4+) hav e at l e ast twe^ continuous y e ar's e^ 

porioncQ inspecting electrical installations 

©f dwellings aft4 similar sii'.od structures 

i^f- a eity e* county. 

(ft) IJloctrical Inspector, Lcel th- A standard 

certificate, electrical inspector, Lc i 'ol H7 shall be 

issued y^ any applicant Vrho meets ali &f the 6«- 

teria (+)7 (3)7 (t^ aft4 (4) ift this Paragraph: 

(+) provid e s c e rtification by a eity »f county 

manager ©f clerk that the applicant is 

performing "codo enforcement" as defined 

by G.S. M3 151.8(a)(3) as aft employee 

©f that local go' i 'emm e nt ©f certification 

by the h e ad ©f the Fngineoring afi4 

Building Codes Division ©f the North 

Carolina Department ©f Insurance that 

the applicant is performing "cod e efl- 

forcement" fof a stat e d e partment ©f 

agency; 

(3) completes short courses specified by the 
board ©F equivalent courses approv e d by 
the board [those exempted from e xamina 
ti©ft by Gt^ M3 151.13(f) Hwst have 
passing grade ©ft short courses); 

(^ makes a passing grade ©ft a written e xam 
ination administered by the board [ft©t 
r e quired ©f those exempted from exam 
ination by Gr^ 113 151.l3(f)|; aft4 

(4) pro' i 'id e s documentation that he possesses 
a minimum ©fa high school education (©f 
equivalent approved by the board) afi4 
©fte ©f the alternatii i o education aft4 eK- 
perience qualifications (©f aft equivalent 
approved by the board) listed below: 

(A) be a North Carolina licensed engineer 
whoso experience has ft©t been ift the de- 
si^ ©F inspection ©f buildings; ©f 

(ft^ have completed at least tw© y e ars ©f 
tochnical ©f university training ift the fiel4 
©f electrical engineering ©f a» approved 
four year non technical degre e ^^ have 
ha4 at l e ast tw© years ©f design , installa 
tion, ©F inspection experience working 
under a c e rtili e d electncal inspector H- ©f 
H47 a licensed engineer, ©f a licensed elec 
trical contractor basing at least aft inter 
mediate lic e ns e ; ©f 

(G) have been certified under this aet as a 
building inspector Hr a plumbing inspec 
t©f -Ht ©F a mechanical insp e ctor th- have 
ha4 at least three years' experience as such 
inspector: aftd have completed at least 
one half yeaF ©f electrical cons i tmction 
technology courses aftd North Carolina 
building code cours e s approv e d by the 
board; ©f 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1207 



PROPOSED RULES 



f©^ hav e a liconood a« aft olootrical con 
tractor with Qxp e rianc e m modium s«e 
buildingo witfe limited ©f interm e diat e k- 
conr i o (Individuals whoso license is e» ift- 
activo status shall provide documentation 
from the contractor's board); _ef 

(fe) have had at- least thre e y e ars ef instal 
lation e* inspection oxporionco worldng 
under dir e ct supervision »f a certified 

contractor V i 'ith intermediate lioonoo ift 
North Carolina wttfe a supporting l e tt e r 
from ouch supervisor; Bf 
fp^ hav e heiA at- least fettf year's experience 
inspecting electrical installations ef Hie- 
dium siix e d buildings fof a eity ef county 
ift > . 'orth Carolina und e r a }et> description 
which contains education afi4 experi e nc e 
requirements e ciuival e nt te- afty- ef those 
above; ef 
(4+)- ha^ i o boon cortifiod under this aet as 
el e ctrical insp e ctor h have ha4 at least 
three years' experienc e approving plans 
aft4 making inspoctions as such inspector; 
afi4 hav e completed at least one half yeaf 
e4^ electrical construction toclmology 
courses approved by the board; »f 
(44^ have a current license f4q-)- as a county 
electrical inspector pursuant t& G.S. 
153 A 351. 
(e^ Electrical insp e ctor, Lovol -H-tr A standard 
oortificate, electrical inspector, I e vel W\r; shall be 
issued te- aay applicant who meets all- ef the eri- 
teria (-l^T f3^ (^ a«*i Hi"* *+* Paragraph: 

f4-> provid e s c e ilificution by a eity »f county 
manag e r e* clerk that the apphcant is 
performing "code enforcement" as defined 
by Gt^i^t 113 151.S(a)(3) as a» employ ee 
^ that local gosommont ef certification 
by the head »f the bnginooring aft4 
Building (jodes Division ef the North 
Carolina Department ©f Insuranc e that 
the applicant is performing "code eft- 
forcement" fop a state department ef 
agency; 
fS)- completoo short coursos specified by the 
board ©f equivalent courses approved by 
the board | those exempted from examina 
tie» by Gr^ 1 13 151.13(f) nwst h*ve 
passing gnide eft short courses]; 
(4) makes a passing grade »ft a written exam 
ination admini '. ter e d by the board (ftet 
requir e d of these exempted from e xam 
mation by Gr^ 1 13 151.13(f)|: aft4 
pros ides documentation thttt he possesses 
a minimum ef a high school education fe* 
equi' i 'alent appro' i od by the board) aftd 
ofte ef the allernati'ie educa - tion aft4 e^i- 



H) 



perience qualifications f©f aft e quival e nt 
approved by the board) list e d b e low: 

(A} be a North Carolina licens e d engineer 
whoso pro professional qualification e«- 
porionco aft4 professional practic e was ift 
the electrical design Bf inspection ef 
buildings aH4 who curr e ntly is opecialhting 
ift electrical engineering; ©f 

(©^ have completed at least fo»f years ©f 
technical ©f university training ift the field 
©f el e ctrical engineering aft4 have ha4 at 
least ©fte yeaf ©f electrical construction ©f 
inspection experienc e worlcing under a 
certified electrical inspector. Level Hiy a 
North Carolina licensed oloctrical engj 
neer, a North Carolina licensed unlimited 
electrical contractor, at least at the lovol 
©f a supervisor ©f journeyman building 
trades craftsman level aft4 ift r e sponsibl e 
charge ©fa wide variety ©f types afid larger 
sizes ©f buddings; ©f 

fG) have been certified under this aet as a 
mechanical inspector 4447 * plumbing ift- 
spector 4447 »f a building inspector 4447 
have had at least fettf ) ' ears' oxporionco as 
such certified inspector; »t^ have com 
plotod at least ©fte yeaf ©f oloctrical con 
stmction technology coursos approved by 
the board; ©f 

(4?^ have a current Hconse as aft oloctrical 

/■' /-\ f\ ^ r fi /•■♦ f^ T* 11 r< t 1^ 1 1 »T 1 1 m->-i « t , \,\ I 1 ; T 1 TT 1- ; 1 t r^ X ji «-t 1^ 
^^^^^^^^^^^^^^^i ^^TX^T W rrill 1 111 L^TJ III., ^ I I,., TV 111 1 ' \^J 1 I I L 

Carolina (Individuals whoso license is ©ft 
inactiv e status shall provide documenta 
ti©ft from t4te contractor's board); ©f 

( I _i' J 1 ItlV t? riiill ctT lcu.^'1 lO LiF y tKAi tr rrr (-'Oil ' 

struction ©f inspection oxporionco working 
under diroct supervision ©f a certified 
oloctrical inspector 444 ©f aft olectncal 
contractor ' i vith unlimit e d lic e ns e ift North 
Carolina, at least tw© years of which have 
boon performed ift responsibl e charge ©fa 
variety ©f types aftd larger sinos ©f build 
ings with a supporting letter from such 
supen'isor; ©f 

(4-^ have boon certified under this aet as aft 
oloctrical inspector 447 have had at least 
f©ftf years' oxporionco approving plans 
aftd making inspoctions; aft4 have com 
plotod at least ©fte yeaf oloctrical con 
struction toclmology cuur!ios approved by 
the board; ©f 

fG4 hav e had at least five continuous years' 
oxporionco inspectuig the oloctrical sys- 
tems ©f a wide variety aft4 typos ©f larger 
sir^es ©f buildings working f©f a «ty ©f 
count)' under a j©b description '.vhich 
contains education aftd oxpoiionc e le- 



120S 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



quir e m e nt ' i e quival e nt k» afty »f Ae 
abov e ; wf 
{^^ hav e ft L'urri'nt liconiie fk^ a» a county 
ulL'ctnoal in i. pL ' ctor pur ' iuant te CiS. 
153 A 351. 
(3) Limitation on occupancy classifications 
of buildintzs for fire Inspectors, I evels J_^ 
II and 111: 

CI-RIH ICA110N LEVELS 
fOR flRi; INSl'I-CIORS 



LEVEL I: 



LEVEL II: 



OCCLPANCY: 

Business 

Small Assembly 

Mercantile 

Residential 

Storage 

Excluding Ilighrise ^ 

No Plan Review 

OCCUPANC^^: 

I-vePithing in f e\el I 
I arge .Assembly 
Educational 
Industnal 



Plan Review of all 
Occupancies m 1 evel H 
Excluding 1 lighrise ^ 
LEVEL III: 

OCCUPANCY: 

f'ver\'thing in Le\els I and H 

Hazardous 

Institutional 

1 lighnse 

Plan Review of aU Occupancies 

(I nlimited Occupancies) 

^ The term "excluding highrise" is listed because 
some of the acceptable occupancies For the levels 
could be located in a highrise building. 

(b) Whenever a pro\ision of this l^ule requires 
a supporting letter, the letter shall be notan/ed. 
shall state the author's qualifications (i.e.. what 
t\ pe and le\ el of certificate or license he holds), 
shall state that the applicant has worked under 
his direct super\ isum lor a specihed peruxl of 
time, and shall recommend certitication of the 
applicant as a specified t\'pe and le\'el of inspector 
upon satistactK^n of other required qualitications. 
\\'hene\er a proMsion of this Rule requires the 
possesNion o[ a license other than those certif- 
icates that are issued hv the Hoard, if the status 
o\_ the license is inacti\ e. the applicant must pro- 
\ide documentation Irom the appropnate licens- 
ing board, \\hene\er a provision ot this Rule 
requires a high school education or other educa- 
tion and experience quaUfications. the Board may 



in its discretion approve equivalent requirements. 
I'very applicant for certification as a code ad- 
ministrator or a building, electrical, mechanical, 
plumbing, or fire inspector shall, in addition to 
satisfying the appropriate education and experi- 
ence qualifications prescribed by this Rule: 
( 1 ) provide documentation that the applicant 

possesses a minimum of a high school 

education; and 

provide certification by a city or county 



01 



manager or clerk that the applicant is the 
administrative head of or is pertorming 
"code enforcement", as defined in Ci.S. 
143-151.H(a)(3), as an employee of that 
city or county; or provide certification by 
the head of the f'ngineering and Building 
Codes Division of the North Carolina 
IJepartment of Insurance that the appli- 



cant is performing "code enforcement", 
as defined in OS. 143- 151.8(a)(3), for a 
state department or agency; and 

(3) make a passing grade on short courses 
specified by the Board or equivalent 
courses appro\'ed bv the Board; and 

(4) and make a passing grade on the written 
examination administered bv the Board. 

(c) Code Administrator. .A standard certilicate, 
code administrator, shall be issued to anv appli- 
cant whcK 

( 1) possesses a standard certificate as a build- 
ing inspector, electrical inspector, me- 
chanical inspector, plumbing inspector, 
or tire inspector; and 

(2) has had at least one year of experience 
supervising inspections for the state or a 
cit\' or county inspection department. 

(d) Building Inspector, Level 1^ A standard 
certificate, building inspector. I evel f shall be 
issued to any applicant who complies with Para- 
graph (b) of this Rule and uhci pnnides doc- 
umentation that the applicant possesses one of 
the following education - and experience qualifica- 
tions: 

( 1 ) completion of at least one \ear of technical 
or trade school training; an apprenticeship 
progiam m building construction; or an 
appnned four-vear nontechnical degree; 

(2) at least six months c)f work under the di- 
rect supen. ision of a standard certif ed 
building inspector f I_f or 111, licensed 
engineer, architect, or general contractor. 



ill 
(4) 



with a supporting letter from such super- 
visor; 

a lunited license as a building contractor; 
at 



leas 



t one \ear of building construction 

or inspection experience while working 
under a limited licensed building contrac- 
tor; 



4:24 NORTH CAROLINA REGISTER Maych 15, 1990 



1209 



PROPOSED RULES 



Q 



tor, with a supporting letter from such 
supervisor; 

(6) certification by the Board as a building 
' inspector Ij^ at least three years of experi- 
ence approving plans and making in- 
spections as such certified inspector; and 
completion of at least one year of building 
construction technology' courses approved 
by the Board; or 

(7) at least four continuous years of experi- 
ence inspecting construction on Level II 
buildings for a city or county inspection 
department. 

(f) Building Inspector, Level III. A standard 
certificate, building inspector, Level III, shall be 
issued to any applicant who complies with Para- 
graph (b) of this Rule and who prcnidcs doc- 
umentation that the applicant possesses one of 
the following education and experience qualifica- 
tions: 

( 1 ) a license as an engineer or architect whose 
preprofessional qualihcations. experience, 
and professional practice is in architec- 
tural, stRictural. or tire protection design 
or inspection of buildings and who cur- 
rently is specializing in architectural, civil, 
or fire protection engineering; 

(2) completion of at least four years of tech- 
nical or university training in the field of 
civil or architectural engineering; and at 
least one year of building construction or 
inspection experience while working un- 
der a certified building inspector III, li^ 
censed engineer, architect, or unlimited 
licensed building ctinlraclor, at least at the 
level of supervisor or journeyman building 
trades craftsman and in responsible charge 
of a wide vanety of types of I evel III 
buildings; 

(3) completion of at least two years of tech- 
nical or uni\'ersity training in the field of 

inspector II. mechanical inspector II, ci\il or architectural engineering or build- 

ing constniction technoloL!\'; and at least 
three years of buildins: constniction. dc- 



(5) certification by the Board as an electrical 
inspector I^ mechanical inspector I^ 
plumbing inspector I^ or fire inspector I^ 
at least one year of experience as such 
certified inspector; and completion of at 
least one year of building construction 
technology courses approved by the 
Board; 

(6) at least two years of experience as an active 
principal in a home building firm; 

(7) at least two sears ot' expenence as a sub- 
contractor in the building trades or work 
in building construction under the super- 
vision of a home builder who at that tune 
had at least three years of experience; or 

(8) at least two continuous years of experience 
inspecting constniction of Level \ build- 
ings for a city or county inspection de- 
partment. 

(e) Building Inspector, I evel II. A standard 
certificate, building inspector. Level 11. shall be 
issued to any applicant whc^ complies with Para- 
graph (b) of this Rule and who provides doc- 
umentation that the applicant possesses one of 
the following education and experience qualifica- 
tions: 

( I) a license as an engineer or architect whose 
experience is outside of civil or architec- 
tural design or inspection of buildings; 
completion of at least two years of tech- 
nical or university training in the field of 
civil or architectural enuineering or build- 



t 



( 



ing construction technology; or an ap- 
proved four-year nontechnical degree with 
at least two years of design, installation, 
or inspection experience on Level I_[ 
buildings while working under a certified 
building inspector \\_ or III, licensed engi- 
neer, architect, or intcnnediate or unlim- 
ited licensed building contractor; 
(3) certification by the Board as an electrical 



plumbing inspector II, or fire inspector II; 
at least three years of experience as such 
certified inspector: and completion of at 
least one year of building constniction 
technology courses approved bv the 
Board; 
(4) a limited or intermediate license as a 
building contractor with experience on 



I evel II buiklums; 



(5) at least thn 



ee vears 



of d 



esmn. installation. 



or inspection experience on Level I_l 
buildings while working under the direct 
supervision of a certified buildmL: inspec- 
tor j_I or III, licensed engineer, architect. 
or intermediate licensed buildiim contrac- 



sign, or inspection exiK-nence while 
working under a certified building inspec- 
tor III, licensed enaneer. architect, or un- 
limited licensed building contractor, with 
at least one \ear in res]-ionsibie charge of 
a wide variety of types of I evel III build- 
ings; 
(4) certification bv the Board as an electrical 
inspector 111, mechanical inspector 111. 
plumbing inspector III, or fire inspector 
111: at_ least lour \ears of experience as 
such certified inspector; and completion 
of at least one \ear ol buiklinL; con- 



i 



1210 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



struction technology courses approved by 
the Board: or 



(51 an 



an unlimited license as a building con- 



tractor with experience in constaiction of 
I.,evel HI buildinizs; 

(6) at least tour years of constaiction or in- 
spection expcnence while workini; under 
the direct supervision of a certified build- 
in t; inspector HI, licensed enizineer, archi- 
tect, or unlimited licensed building 
contractor, two \ears of which have been 
pertonned in responsible charge of a wide 
variety of t\pes of I evel HI buildmgs, 
with a supporting letter from such super- 
visor; 

(7) certification by the Roard as a building 
inspector H; at least four \ears of experi- 
ence approMniZ plans and making in- 
spections as such certified inspector; and 
completion of lU least one vcar of building 
construction technology courses approved 
by the Hoard; or 

(S) at least tive continuous \ears of experience 
inspecting the constaiction of a wide va- 
riety of t\pes of Level HI buildings for a 
city or county inspection department. 
(g) Flectrical Inspector. 1 evel L A standard 
certificate, electrical inspector. I,I:VI' L T shall 
be issued to any applicant who complies with 
Paragraph (b) of this Rule and who provides 
documentation that the applicant possesses one 
of the following education and experience quali- 
fications: 

( 1) completion of at least one year of technical 
or trade school training or an apprentice- 
ship program in electncal construction: 



or an approved four-\ear nontechnical 
degree; 

(2) at^ least six months of work imdcr the di- 
rect super\ision of a standard certified 
electrical inspector K j_r or III, licensed 
engineer, or licensed electrical contractor, 
with a supporting letter from such super- 
visor; 

(3) a Umited restricted (one family dwelling) 
or limited license as an electrical contrac- 
tor; 

(4) at least one \'ear of electrical installation 
or inspection experience while working 
under a limited licensed electncal contrac- 



(il 



tor; 
certification 



h\ the Board as a building 



inspector L meclKinical inspector L 
plumbing inspector J^ or fire inspector L 
at least one \ ear of experience as such 
certitied inspector: and completion of at 
least one \ear of electrical constmction 



technology courses approved by the 
Board; 

(6) at least two years of experience in electrical 
installation; or 

(7) a current license (3q) as a county electrical 
inspector issued by the ('ommissioner of 
Insurance pursuant to (i.S. I5.\\-351; or 

(8) at least two continuous years of experience 
inspecting electrical installations in Level 
I buildings for a city or county inspection 
department. 

(h) Electrical Inspector, Level II. A standard 
certificate, electrical inspector, I evel II, shall be 
issued to any applicant who complies with Para- 
graph (b) of this Rule and who pro\ides doc- 
umentation that the applicant possesses one of 
the following education and experience qualifica- 
tions: 

( 1) a license as an engineer with experience 
outside of electrical design or inspection 
of buildings; 

(2) completion of at least two years of tech- 
nical or uni\ersitv training vn the field of 
electrical engineering or electncal con- 



struction technology; or an appro\ed 
four-\car nontechnical degree and at least 
two years of design, installation, or in- 
spection experience on I evel H buildings 
while workmg under a certified electrical 
inspector I_[ or HI. a licensed engineer, or 
an intennediate or unlimited licensed 
electrical contractor; 



(3) certification by the Board as a building 
inspector II, mechanical inspector II, 
plumbing inspector II. or fire inspect(^r II; 
at least three \cars of experience as such 
certified inspector: and completion of at 
least one year of electrical construction 
technology courses approved by the 
Board; 

(4) a limited or intennediate license as an 
electrical contractor with expcnence on 
Le\el I_[ buildings; 

(5) at least three \ears of installation or in- 
spection experience on I e\el \\_ buildings 
while working under the direct super\ ision 
of a certified electncal inspector H or HI. 
a licensed engineer, or an intermediate li- 
censed electrical contractor, with a sup- 
porting letter frcnn such supenisor: 
certitlcation by tjie Board as an electrical 
inspector I^ at least three \ears of experi- 
ence approving plans and making in- 
spections as such certified inspector: and 
completion (M al least one \ear of elec- 
trical constmction technology courses ap- 
proN'ed by the Board; 



(61 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1211 



PROPOSED RULES 



(7) a current license (2q) as a county electrical 
inspector issued by the (rommissioner of 
Insurance pursuant to G.S. 153A-351; or 
(S) at least Four continuous years of experi- 
ence inspecting electrical installations in 
Level ]_[ buildings for a city or county in- 
spection department. 
(i} Electrical Inspector, Level III. A standard 
certificate, electrical inspector, I evel III, shall be 
issued to any applicant who complies with Para- 
graph (b) of this Rule and who provides doc- 
umentation that the applicant possesses one of 
the following education and experience qualifica- 
tions: 

a license as an engineer with preprofes- 
sional qualifications and experience, and 
professional practice is in electrical design 
or inspection of buildings and who is cur- 
rently specializing in electrical engineering; 
(2) completion of' at least four years of tech- 
nical or university training in the field of 
electrical engineenng; and at least one year 
of electrical construction or inspection 
experience while working under a certified 
electncal inspector III, licensed engineer, 
or unlimited licensed electrical contractor, 
at least at the level of supervisor or jour- 
neyman building trades craftsman and in 



ih 



responsible charge of a wide vanety of 
types of Level 111 buildings; 

(3) completion of at least two years of tech- 
nical or university training m the tield of 
electrical engineering or electrical con- 
struction technology; and at least three 
years of electrical construction, design, or 
inspection experience while working un- 
der a certified electrical inspector 111, li^ 
censed engineer, or unlimited licensed 
electrical contractor, with at least one year 
in responsible charge of a wide variety of 
t\pes of 1 .evel 111 buildings; 

(4) certification by the Board as a building 
inspector HI, mechanical inspector 111, 
plumbing inspector 111, or tire inspector 
111: at least four years of experience as 
such certified mspector; and completion 
of at least one year of electrical con- 
struction technology courses approved by 
the Board; 

(5) have an unlimited license as an electrical 
contractor with experience in construction 
of Level 111 buildings; 

(6) at least four \ears of constniction or in- 
spection expenence while working under 
the direct supcr\ision of a certified elec- 
trical inspector 111, licensed engineer, or 
unlimited licensed electrical contractor, 



in responsible charge of a wide variety of 
types of Level 111 buildings, with a sup- 
porting letter from such supervisor; 

(7) certification by the Board as an electrical 
inspector II; at least four years of experi- 
ence approving plans and making in- 
spections as such certified inspector; and 
completion of at least one year of elec- 
trical construction technology courses ap- 
proved by the Board; 

(8) a current license ( Iq) as a county electrical 
inspector issued by the Commissioner of 
Insurance pursuant to G.S. 153A-35I; or 

(9) at least live continuous years of experience 
inspecting the electrical SNStems of a wide 
variety of types of Level 111 buildings for 
a city or county inspection department. 

(i) Mechanical Inspector, Level L A standard 
certificate, mechanical inspector. Level I^ shall be 
issued to any applicant who complies with Para- 
graph (b) of this Rule and who provides doc- 
umentation that the applicant possesses one of 
the following education and experience qualifica- 
tions: 

( 1) completion of at least one year of technical 
or trade school training or an apprentice- 
ship program in mechanical constniction; 
or an approved four year nontechnical 
degree; 

at least six months of work under the di- 
of a standard certified 



< 



(2) at least six 



rect supervision 
mechanical inspector Jj, iL or III, licensed 
engineer, or licensed mechanical contrac- 
tor, with a supporting letter from such 
supervisor; 

(3) an H-2 or 11-3 license as a mechanical 
contractor; 

(4) at least one year of mechanical installation 
or mechanical inspection experience while 
working under an 1 1-2 or 1 1-3 licensed 
mechanical contractor; 

[5} certification by the Board as a building 
inspector L electrical inspector L plumb- 
ing inspector L or fire inspector L at least 
one year of experience as such certified 
inspector; and completion of at least one 
year of mechanical constiaiction technol- 
ogy courses approved by the Board; 
at least two years' experience in mechan- 
ical installation; or 
at least two continuous years of experience 



{ 



(61 



inspecting mechanical installations in 
Lc\cl I^ buildings for a citv or county in- 
spection department, 
(k) Mechanical Inspector. Le\'el II. A standard 
certificate, mechanical inspector. I evel II. shall 

be issued to an\^ applicant who complies with 

two \ears of which have been peiformed Paragraph (b) of this Rule and who pro\ides 



I 



1212 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



documentation that the applicant possesses one 
of the following education and expenence quali- 
fications: 

( 1) a license as an enuinccr with experience 
outside of mechanical design or inspection 
o[ buildings; 

(2) C(nnpleti(^n of at least two years of tech- 
nical or university training in the field of 
mechanical endneenng or mechanical 
construction techn(>log\'; or an approved 
fcHir-vear nontechnical degree with at least 
two \ears cM' design, installation, or in- 
spection experience on level H buildings 
while working under a certd'ied mechan- 
ical inspector l_[ or 111, licensed engineer, 
or licensed 11-2 or 11-3 mechanical con- 
tractor; 

(3) certification bv the Board as a building 
inspector II, electncal inspector II, 
plumbing inspector II, or fire inspector II; 
at least three years of experience as such 
certified inspector: and completion of at 
least one vear of mechanical construction 



01 



techncdogv 
Board: 



courses 



appro\'ed by the 



an 11-2 or H-3 license as a mechanical 
contractor with experience on I e\ el J_I 



buikiinizs; 



(5) at least three \ears of installation or in- 
spection experience on I e\ el ]_[ buildings 
while working under the direct supervision 
of a certified mechanical inspector \\_ or 
III, licensed engineer, or licensed 1 1-2 or 
1 1-3 mechanical ccMilractor, with a sup- 
porting letter trom such supervisor; 
certification bv the Board as a mechanical 
least three years of experi- 



(6) 



plans and making in- 



tZl 



inspector h a[ 
ence appro\ini; 

spections as such certified inspector: and 
completion of at^ least one \ear of me- 
chanical constnictitm technology courses 
approved by the Board: or 
at least four continuous years of e xperi- 



ence inspecting mechanical installations in 
I e\el I_[ buildings for a cit\- or county in- 
spection department. 
(1) Mechanical Inspectcir. I e\el III. A standard 
certificate, mechanical inspector, level III shall 



be 



to any applicant who complies with 



Paragraph (b) of this Rule and who pro\ides 
documentation that the applicant possesses one 
of the following education and expenence quali- 
fications: 

( 1 ) a license as an enizineer with preprofcs- 
sional qualifications and expenence and 
professional practice ijn mechanical design 
or inspection of buildings and current 
specialization in mechanical engineering: 



111 



(51 
(61 



completion of at least four years of tech- 
nical or university training m the field of 
mechanical engineering; and at least one 
year of mechanical construction or in- 
spection experience while working under 
a certified mechanical inspector III, h^ 
censed engineer, or licensed 1 1- 1 . 1 1-2, and 
H-3 mechanical contractor, at least at the 
level of supervisor or journeyman building 
trades craftsman and m responsible charge 
of a wide variety of t\pes of 1 ,evel III 
buildings; 

completion of at least two years of tech- 
nical or uni\'ersity training in the field of 
mechanical engineenng or mechanical 
construction technoloa\' and at least three 



years of mechanical constaiction, desiizn. 



or inspection experience working under a 
mechanical inspector 111, licensed me- 
chanical engineer, or licensed II- 1, 11-2, 
and W-i mechanical contractor, with at 
least one year in responsible charge of a 
wide \"ariet\ of t\pes of I e\ el III build- 



(4) certification bv the Board as a building 
inspector III, electncal inspector III. 
plumbing inspector III, or fire inspector 
III; at least four years of experience as 
such certified inspect(^r. and completion 
of at least one \ear of mechanical con- 
struction technology courses approved bv 
the Board; 

111, 11-2, and H-3 license as a mechanical 
contractor with experience in constmction 
ot^^ I e\ el III buildings: 
at least four \'ears of constmction or in- 



speclion experience while working under 
the three! super\ ision of a certified me- 
chanical inspector III, licensed enuineer. 
or licensed 1 1- 1 , 1 1-2, and 1 1-3 mechanical 
contractor, two \ears of which ha\e been 
perionned in respiMisible charge of a wide 
varietN' of t\pes of I e\el 111 buildinus. 



with a supporting letter from such super- 
\isor; 

as a mechanical 



(7) certification bv the Boarc 
inspector II: at least tour \ears of experi- 
ence appro\ ing plans and making in- 
spections as such certified inspector: and 
completion ot at least one \ear o[ me- 
chanical construction techncdogv courses 
approved bv the Board: 

(8) at least li\e continuous \ears of experience 
inspecting the mechanical s\ stems of a 
wide \anet\' of l\pes of I e\el III buildings 
for a cit\ or countx inspection depart - 
ment. 



4:24 NORTH CAROLINA REGISTER M inch 15, 1990 



I2I3 



PROPOSED RULES 



(m) Plumbirip Inspector, Level ]__ A standard 
certificate, plumbing inspector. Level J_^ shall be 
issued \Q_ any applicant who complies with Para- 
graph (b) of this Rule and who provides doc- 
umentation that the applicant possesses one of 
the following education and experience qualifica- 
tions: 



( 1) completion of at least one year of technical 
or trade school training or an apprentice- 
ship program in plumbing construction; 
or an approved four-year nontechnical 
degree; 

(2) at least six months of work under the di- 
rect supervision of a standard certified 
plumbing inspector li I_L or 111, licensed 
engineer, or licensed plumbing contractor, 
with a suppcjrting letter from such super- 
visor; 

(3) a license as a plumbing contractor; 

(4) at least one year of plumbing installation 
or plumbing mspection experience while 
working under a licensed plumbing con- 
tractor; 

(5) certification bv the Board as a building 
inspector L electncal inspector L me- 
chanical inspector L or fire inspector I^ at 
least one year of experience as such certi- 
fied inspector; and completion of at least 
one year of plumbing construction tech- 
nology courses approved by the Board; 

(6) at least two years of experience in plumb- 
in iz installation; or 

(7) at least two continuous years of experience 
inspecting plumbing installations in Level 
I buildings for a city or county inspection 
department. 

(n) Plumbing Inspector, Level II. A standard 
certificate, plumbing inspector, Level 11. shall be 
issued to any applicant who complies with Para- 
graph (b) of this Rule and who pro\ides doc- 
umentation that the applicant possesses one of 
the following education and expenence ciualifica- 
tions: 

(1) a license as an engineer with experience 
outside of plumbing design or inspection 
of buildings; 

(2) completion of at least two \'ears of tech- 
nical or university training in the field of 
mechanical engmcering or plumbing con- 
struction technology; or an approved 
four-year nontechnical degree and at least 
two years of desiizn, installation, or in- 
spection experience on I evel 11 buildings 



iH 



while working under a certified plumbing 
inspector H or 111, licensed engineer, or 
licensed plumbing contractor; 
certification bv the Board as a building 
inspector II. electrical inspector II. me- 



chanical inspector II, or fire inspector II; 
at least three years of experience as such 
certified inspector; and completion of at 
' least one year of plumbing construction 
technology courses approved by the 
Board; 

(4) a license as a plumbing contractor with 
experience on L e\el ]]_ buildings; 

(5) at least three years of installation or in- 
spection experience on I evel ]_[ buildings 
while working under the direct supervision 
of a certified plumbing inspector J_I or III, 
licensed engineer, or licensed plumbing 
contractor, with a supporting letter from 
such supervisor; 

(6) certification bv the Board as a plumbing 
inspector L at least three years of expen- 
ence approving plans and making m- 
spections as such certified inspector; and 
completion of at least one year of plumb- 
ing construction technology courses ap- 
proved by the Board: or 

(7) at least four continuous years of experi- 
ence inspecting plumbing installations on 
Level \\_ buildings for a city or count\- in- 
spection department. 

Mumbing Inspector, I e\ el III. A standard 
ate, plumbing inspector, I .evel III shall be 

issued to an\' applicant who complies with Para- 
graph (b) of this Rule and who provides doc- 
umentation that the applicant possesses one of 
the following education and experience qualifica- 
tions: 



(o)_I 
ccrtific 



01 



Hi 



ill 



a license as an engineer with preprofes- 
sional qualifications and experience and 
professional practice m plumbing design 
or inspection of buildings and who is cur- 
rently specializing in mechanical engi- 
neering; 

completion of at least four years of tech- 
nical or university training in the field of 
mechanical engineenng and at least one 
year of plumbing construction or in- 
spection expenence while working under 
a certified plumbing inspector III, licensed 
cngmecr. or licensed plumbing contractor, 
at least at the level of supcnisor or jour- 
neyman building trades craftsman and in 
responsible charge of a wide warietv of 
types of Level III buildings; 
completion of at_ least two \ears of tech- 
nical or universitx' training m the field of 
mechanical engineering or plumbing con- 
struction tcchnolog\ ; and at_ least three 
years of plumbing constmction, design. 



or inspection expenence while working 
under a certified plumbing inspector III. 
licensed engineer, or licensed plumbing 



1214 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



contractor, with at least one year in re- 
sponsible charge of a wide variety of types 
of Level HI buildings; 

(4) certification by the Board as a building 
inspector 111, electrical inspector 111, me- 
chanical inspector 111, or fire inspector 111; 
at least four years of experience as such 
certified inspector; and completion of at 
least one year of plumbing constniction 
technology courses approved by the 
Board; 

(5) a license as a plumbing contractor with 
expenence in plumbing systems of Level 
111 buildings; 

(6) at least four years of construction or in- 
spection experience working under the di- 
rect supervision of a certified plumbing 
inspector III, licensed engineer, or licensed 
plumbing contractor, two \ears of wliich 
have been perfoimed in responsible charge 
of a wide vanetv of t\pes of Level III 
buildings, with a supporting letter from 
such supervisor; 

(7) certification bv the Board as a plumbing 
inspector II: at least four \'ears of experi- 
ence approving plans and making in- 
spections as such certified inspector; and 
completion of at least one \ear of plumb- 
ing constniction technology courses ap- 
proved by the Board; or 

(8) at least five continuous years of experience 
inspecting the plumbing systems of a wide 
\anetv of t\pes of Le\el III buildings 
while working for a city or county in- 
spection department. 

(p) I -ire Inspector. I evel L A standard certif- 
icate, tire inspector, I .e\el L shall be issued to any 
applicant who complies with Paragraph (b) of 
this Rule and who pro\ ides d(H'umentation that 
the applicant possesses one of the following edu- 
cation and experience qualifications: 

( 1) completion of at least one \ear of technical 
or trade school training or an apprentice- 
ship progr:im in tire protection technol- 
ogy; or an approved four-vear 
nontechnical degree: 

(2) at^ least six months of work under the di- 
rect superyjsion of a standard certified fire 
inspector L LL or III, licensed engineer, 
or architect, with a supporting letter from 
such supervisor: 

(-1) at least three \ears of constniction. main- 
tenance, or general inspection experience 
m fire protection systems while working 
under a limited licensed contractor with 
experience m tire protection s\ stems; 

(4) certification bv the Board as a building 
inspector L electrical inspector L me- 



chanical inspector I^^ or plumbing inspec- 
tor I^ at least one year of experience as 
such certified inspector; and completion 
of at least one year of fire protection 
technology courses approved by the 
Board; 

(5) at least two continuous years of fire in- 
spection experience inspecting Level I 
Occupancy buildings for a city, county, 
or other governmental fire inspection de- 
partment; 

(6) at least four continuous years of experi- 
ence in fire suppression activities for a 
city, county, volunteer, or other govern- 
mental fire department; or 

(7) I'irefighter Level 111 certification under the 
North Carolina State I ire and Rescue 
Commission with at least one year of fire 
protection experience in Level ]_ Occu- 
panc\ buildings. 

(q) [-'ire Inspector. Level II. A standard cer- 
tificate, tire inspector, Le\'el II. shall be issued to 
any applicant who complies with Paragraph (b) 
of this Rule and who provides documentation 
that the applicant possesses one of the following 
education and experience quaLifications: 

( 1) a license as an engineer or architect with 
expenence outside of design or inspection 
of fire protection systems; 

(2) completion of a1 least two \ears of tech- 
nical or university training in the field of 
civil or architectural engineering, building 
constniction technology, or fire protection 
technology; or an approved four- year 
nontechnical degree and at least two years 
of design and installation experience in fire 
protection systems or fire inspection ex- 
perience on Level I_[ Occupancy buildings 
while working under a certified fire in- 
spector ]_[ or III, licensed engineer, or ar- 
chitect; 

(3) certification bv the Board as a building 
inspector II. electrical inspector II, me- 
chanical inspector II. or plumbing inspec- 
tor II: at least three years of experience as 
such certified inspector; and completion 
of at least one year of fire protection 
technology courses approved bv the 
Board; 

(4) at least three years of design, installation. 



{21 



or inspection expenence in fire protection 
systems on I e\el ]_[ ( )ccupanc\ buildings 
while working under the direct supen ision 
of a certified fire inspector H or III, li^ 
censed engineer, or architect, with a sup- 
porting letter frcnn such supen. i^or; 
certification by the Board as a fire inspec- 
tor L at least three years of experience 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1215 



PROPOSED RULES 



making inspections as such certified in- 
spector; and completion of at least one 
year of fire protection technology courses 
approved by the Board; 

(6) at least four continuous years of experi- 
ence conducting fire inspections in Ixvel 
n Occupancy buildings for a city, county, 
or other oovemmental fire inspection de- 
partment; or 

(7) completion of the basic, intennediate, and 
advanced classes of the North Carolina 
Fnre Prevention School, with at least three 
years of fire protection experience in Level 
II Occupancy buildings. 

(r) Fire Inspector, level III. A standard cer- 
tificate, fire inspector. Level HI, shall be issued 
to any applicant who complies with Paragraph 
(b) ot' this Rule and vvh(^ provides documentation 
that the applicant possesses one of the following 
education and experience qualifications: 

( 1) a Uccnse as an engineer or architect with 
preprofessional qualifications and experi- 
ence and professional practice in architec- 
tural, structural, or fire protection design 
or inspection of buildings and who is cur- 
rently speciafizing in architectural, civil, 
or fire protection engineering; 

(2) completion of at least four years of tech- 
nical or university training in the field of 
civil, architectural, or fire protection engi- 
neering; and at least one year of fire in- 
spection experience while working under 
a certified fire inspector 111, licensed engi- 
neer, or architect and in responsible 
charge of Level 111 Occupancy buildings; 

(3) completion of at least two years of tech- 
nical or university training in the field of 
civil, architectural, or fire protection engi- 
neering; and at least three years of con- 
struction, design, or inspection experience 
while working under a certified fire in- 
spector III, licensed engineer, architect, or 
unlimited licensed contractor, with at least 
one year in responsible charge of Level III 
Occupancy buildings; 

(4) certification by the Board as a building 
inspector III, electrical inspector III, me- 
chanical inspector III, or plumbing in- 
spector III; at least four years of 
experience as such certified inspector; and 
completion of at least one year of fire 
protection technology courses approved 
by the Board; 

(5) at least four years of design and installation 
experience in fire protection systems or 
fire inspection expenence while working 
under the direct super\'ision of a certified 



fire inspector III, licensed engineer, or ar- 
chitect, two years of which have been 
performed in responsible charge of I^vel 
' III Occupancy buildings, with a support- 
ing letter from such supervisor; 

(6) certification by the Board as a fire inspec- 
tor II; at least four years of experience 
approving plans and making inspections 
as such certified inspector; and completion 
of at least one year of fire protection 
technology courses approved by the 
Board; or 

(7) at least five continuous years of experience 
conducting fire inspections m I .evel III 
Occupancy buildings for a city, county, 
or other go\'emmental fire inspection de- 
partment. 



Statutory Authority 
143-151.13. 



G.S. 143-151.12(1); 



.0709 RE^EVVAL 

To remain effective, a standard certificate must 
be renewed annually on or before the first day 
of July. Applications for renewal shall be made 
in the same manner as the original apphcation for 
the certificate, on forms furnished by the Division 
of Engineering and Building Codes of the De- 
partment of Insurance. A five ten dollar ($5.00) 
($10.00) renewal fee shaU accompany each such 
application. In the event that an application for 
renewal is not received by July 1, an additional 
late-renewal fee of two dollars ($2.00) shall be 
charged. Any person who fails to renew his cer- 
tificate for a period of two consecutive years shall 
be required by the Board to take and pass the 
same examination as unlicensed applicants for 
that type and level of certificate before allowing 
such person to renew his certificate. 

Statutory Authority G.S. 143-151 .16. 

TITLE 13 - DEPARLMENT OF LABOR 



ly otice is hereby given in accordance with G.S. 
I50B-I2 that the Department of Labor - Appren- 
ticeship and Training Division intends to amend 
rule(s) cited as 13 NCAC 14 .0204 and .0404. 

I he proposed effecti\-e date of this action is .fuly 
I. 1990. 

1 he public hearing will be conducted at 2:00 
p.m. on .'ipril 18, 1990 at Third Floor Board 
Room, Education Building. 116 West Edenton 
Street, Raleigh, XC 27601. 



1216 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



(^ ommcnt Procedures: People wanting to pres- 
ent oral testimony at the hearing or who want to 
have written testimony read at the hearing should 
provide a written summary of the proposed testi- 
mony to the Department by April 13, J 990. Oral 
presentations will be limited to 15 minutes each. 
Written statements not presented at the hearing 
will be accepted by the Department until April IS, 
J 990. All correspondence should be directed to 
Bobby Bryan, N.C. Department of Labor, 4 West 
Edenton Street, Raleigh, NC 27601 . Interpreters 
for hearing impaired will be made available if re- 
quested, 24 hours in advance. 



(a) The OJT program must be set forth in a 
written document, signed by the sponsor, which 
includes the following provisions and is denomi- 
nated the programs standards for OJ T: 

(9) A provision requiring that the ratio of 
trainees to fully qualified workers will not 
exceed »fte two to one at each job site, 
work force, department, or plant; 

Statutory Authority G.S. 94-1; 94-2; 94-4. 

niLK ISA DKPARTIVlENr OF 

EN\ IROWMENT, HEALTH AND NATURAL 

RESOURCES 



ClIAPIKK 14 - AE'l'KKNTICESIIIl' AND 
TKAIMNG DIVISION 

SECTION .0200 - REQUIREMENTS AND 
QUALIFICATIONS FOR APPRENTICESHIP 

.0204 REQUIREMENTS AND STANDARDS OF 
APPRENTICESHIP 

(a) An apprenticeship program must conform 
to the following minimum requirements in order 
to obtain and maintain registration: 

(5) The apprcnticesliip program must be set 
forth in a wnttcn document, signed by the 
sponsor, which includes the following 
provisions and is denominated the pro- 
gram standards of apprenticeship: 
(J) A provision requiring that the ratio of 
apprentices to journeymen will not exceed 
e«e two to one at each job site, work 
force, department, or plant, except as fol- 
lows: 

(i) In the building and construction 
trades, the ratio of apprentices to jour- 
neymen in all occupations except elec- 
trician, shall not exceed one to one fe* 
t-l+e t+f^ thn. ' L > jounioymL'u at«i »ftt» te- 
fo«f thorc'ciftor at each job site, work 
force, department, or plant; 
(ii) In the building and construction 
trades, in the occupation ot electrician, 
the ratio of apprentices to jonmcvmen 
shall not exceed one to two at each job 
site, work force, depailment. or plant; 
(iii) f«| No such spccilic ratios are re- 
quired where expressly prohibited or 
otherwise provided for by an applicable 
collecti\'e bargaining agreement; 

Statutoiy Authority G.S. 94-1; 94-2; 94-4. 

SECTION .0400 - APPROVAL/\ E I ERANS' 
TR.MNING ALLOWANCES 

.0404 STANDARDS FOR OJT 



A^. 



otice is hereby given in accordance with G.S. 
J 508- J 2 that the Environmental Management 
Commission intends to amend rule(s) cited as 
I5A NCAC 2B .0303. 

1 he proposed effective date of this action is No- 
vember I. 1990. 

1 he public hearing will be conducted at 7:00 
p.m. on May 14, 1990 at Courtroom A, Macon 
County Courthouse, 5 W. Main Street, Eranklin, 
N.C. 



Co 



' omment Procedures: A II persons interested in 
this matter are invited to attend. Comments, 
statements, data and other information may be 
submitted in writing prior to, during, or within 30 
days after the hearing or may be presented orally 
at the hearing. Oral statements may be limited 
at the discretion of the hearing officer. Submittal 
of written copies of oral statements is encouraged. 
Eor more information contact Suzanne II. Keen, 
Division of Emironmental Management, P.O. Box 
27687, Raleigh. NC 27611, (919) 733-50S3. 

CII AFTER 2 - ENMRONMENTAL 
MAN.V(,EMENT 

SUBCHAPTER 2B - SURFACE WATER 
SIANDARDS: MONHORIN(; 

SEC HON .0300 - ASSIGNMEN r OF S IREAM 
CLASSIFIC.VnONS 

.0303 LITTLE TENN Rl\ ER B.VSIN AND 

SAVANNAH RI\ER DR.MNAGE AREA 

(c) The Little Tennessee River Basin and Sa- 
vannah River L)rainage Area Schedule of Classi- 
fications and Water Quality Standards was 
amended effective: 

(1) February- 16, 1977; 

(2) March f, 1977; 

(3) Julv 13, 1980; 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1217 



PROPOSED RULES 



(4) 
(5) 
(6) 
(7) 
(81 



February 1, 1986; 
October 1, 1987; 
March 1, 1989; 
January 1, 1990; 
November 1, 1990. 



(f) I'he Schedule of Classifications and Water 

Quality Standards for the Little Tennessee River 

Basin and Savannah River Drainai^e Area was 

amended effective November j_^ 1990 as follows: 

( 1) Cartoosechaye Creek [Index Nos. 2-19-(l) 

and 2-19-( 16)| from the Town of I'ranklin 

water supply intake to bridge at U.S. 

Hwy. 23 and 441 and from the bridge at 

U.S. Hwy. 23 and 44j_ to the Little Ten- 

nessee River was reclassified from Classes 



WS-lIl Tr and C Tr to Classes WS-Ill&B 
Tr and B Tr respectively. 
(2) Coweeta Creek (Index No. 2-10) from its 
source to the Little Tennessee River in- 
cluding all tributaries except [3r\man 
Fork (Index No. 2-10-3) and North Fork 
Coweeta Creek (Index No. 2-10-4) was 
reclassified from Classes C and C Tr to 



Classes B and B Tn 

Slatutory Authority G.S. 143- 
l43-2l5.3(a)(l). 



'14.1; 143-215.1; 



^■k-k'k'k'k'k'k-k'k-k'k-k-k-k'k'k-k 



lyotice is hereby given in accordance with G.S. 
] SOB- 12 that the Environmental Management 
Commission intends to amend nde(s) cited as 
ISA NCAC 2B .030S. 

1 he proposed effective date of this action is No- 
vember 1. 1990. 

1 he public hearing will be conducted at 7:00 
p.m. on May IS, 1990 at Courtroom 1 , Watauga 
County Courthouse, 403 W. King Street, Boone, 
N.C. 

y^omnient Procedures; All persons interested in 
this matter are imited to attend. Comments, 
statements, data, and other information may be 
submitted in writing prior to, during, or within 30 
days after the hearing or may be presented orallv 
at the hearing. Oral statements may be limited 
at the discretion of the hearing officer. Submittal 
of written copies of oral statements is encouraged. 
For more information contact Suzanne If. Keen, 
Division of Eiwironmental Management, P.O. Box 
276S7, Raleigh. NC 27611, (919) 733-S0S3. 

.0.?05 \VAT.\LGA RH ER BASIN 



(c) The Watauga River Basin Schedule of 
Classifications and Water Quality Standards was 
amended effective: 

(1) August 12, 1979; 

(2) February 1, 1986; 

(3) October 1, 1987; 

(4) July 1, 1989; 

(51 November 1, 1990. 
(e) The Schedule ot' Classifications and Water 
Quality Standards for the Watauga River Basin 
was amended effective November J^ 1 990 with 
the reclassification of the Watauga River from 
the US Highway 321 bridge to the North 
Carolina/Tennessee state line from Class C to 
Class B. 

Statutory Authority G.S. 143-214. 1; 143-215.1; 
143-2I5.3(a)(l). 

TITLE 16 - DEPARTMENT OF PUBLIC 
EDUCATION 



lyotice is hereby given in accordance with G.S. 
1 SOB- 12 that the State Board of Education in- 
tends to amend rule(s) cited as 16 NCAC 6D 
.0105. 

1 he proposed effective date of this action is A u- 
gust 1, 1990. 



Th 



he public hearing will be conducted at 9:30 
a.m. on April 18, 1990 at Third Floor Board 
Room, Education Building 114 W. Edenton 
Street, Raleigh, NC 27603-17 12. 



Co 



'Omment Procedures: Any interested person 
may present views and comments either in writing 
prior to or at the hearing or orally at the hearing. 

CHAPTER 6 - ELE.MENTARY AND 
SECONDARY EDLCVTION 

SUBCHAPTER 6D - INSTRUCTION 

SECTION .0100 - CURRICULUM 

.0105 USE OF SCHOOL DAY 

(a) Local boards of education are obligated 
both to assure that materials presented to stu- 
dents during the school day arc related to the 
curriculum, and to preserve their discretion and 
the discretion of administrators and teachers to 
determine, within the limits of the prescribed 
curriculum, the materials to be presented to stu- 
dents during the school day and the times during 
which materials selected will be presented. 
Therefore, no local board of education may enter 



7275 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



PROPOSED RULES 



into a contract or agreement with any person, 
corporation, association or organization which: 

(1) limits or impairs its authority and respon- 
sibility, or the authority and responsibility 
of administrators and teachers, to deter- 
mine the materials to be presented to stu- 
dents during the school day; or 

(2) Umits or impairs its authority and respon- 
sibility, or the authority and responsibility 
of administrators and teachers, to deter- 
mine the times during the school day 
when materials will be presented to stu- 
dents. 

(b) Local boards of education are obligated to 
assure that students, as a consequence of the 
compulsory attendance laws, are not made a 
captive audience for required viewing, listening 
to, or reading commercial advertising. Therefore, 
no local board of education may enter into any 
contract or agreement with any person, corpo- 
ration, association or organization pursuant to 
which students are regularly required to observe, 
listen to, or read commercial advertising. This 



Rule does not prohibit local boards of education, 
teachers or administrators from requiring stu- 
dents from time to time to observe, Listen to, or 
read educational materials that contain commer- 
cial advertising. This Rule also shall not prohibit 
the regular study of advertising as an academic 
subject. 

fe^ Any contract t>f agroomont proviouoly mado 
by a local board ef oducation vpt contravention 
ef this Rule ohaU net- b«» rL'nov i 'L'd by- the k)cal 
board. Flo' i VL'sor, afty contract e* agrt'omont 
pro' i iouijly mado by a local board &i education 
that- results i«- a violation Bf the five aft4 one half 
hour instructional day is her e by declared void 
aift4 unenforcoablo. 

(c) Tliis Rule shall apply both retroactively and 
prospectively. Any contract or agreement previ- 
ously made in contravention of tlus Rule is dc;^ 
clared void and unenforceable. 



Authority N.C. Constitution. Article IX. Sec. 5; 
G.S. II5C-I; II5C-2; I l5C-I2(9)c.: II5C-8I. 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1219 



FINAL RULES 



1 he List of Rules Codified is a listing of 
rules that were filed to be effective in the 
month indicated. 



iKules filed for publication in the NCAC 
may not be identical to the proposed text 
published previously in the Register. Please 
contact this office if you have any questions. 

/± dopted ndes filed by the Departments of 
Correction, Revenue and Transportation are 
published in this section. These departments 
are not subject to the provisions ofG.S. I SOB, 
Article 2 requiring publication in the N.C. 
Register of proposed rules. 

LJ pon request from the adopting agency, the 
text of ndes will be published in this section. 

1 unctuation, typographical and technical 
changes to ndes are incorporated into the 
List of Rules Codified and are noted as * 
Correction. These changes do not change the 
effective date of the nde. 



in LE 5 DEPARTMENT OF 
CORRECTION 

CIlAl'TER 2 - DIVISION OF PRISONS 

SLBCIIAPTER 211 - RELIGIOUS PRACTICE 

SECnON .0100 - ISLAMIC SERVICES AND 
PRACnCES 

.0106 ADVISORY COMMIITEE ON 

RELIGIOUS MINISIRV IN PRISONS 

(a) General. The Secretary of Correction 
hereby establishes the Ad\'isory Committee on 
Religious Ministry in Prisons for the purpose of 
serving as a resource for the expansion and 
strengthening of chaplaincy services and religious 
activities within the Division of Prisons. Com- 
mittee activities shall be governed by the rules 
and regulations promulgated by the Department 
of Correction. The Committee shall report to 
the Director of Prisons. 

(b) Appointment. 



(1) Recommendation for appointment wiU be 
made by the appropriate person or agency 
responsible for prison ministry in each re- 
cognized judicatory and will be forwarded 

' through the chain of command for review 
by the Director of Prisons. The hst of 
nominees will be submitted to the Secre- 
tary for consideration. 

(2) The Secretary shaU appoint committee 
members to staggered three-year terms. 
Committee appointments will be made 
annually, with appointments effective 
January 1 of each year. When unsched- 
uled vacancies occur, new appointees wiU 
serve the unexpired term of the council 
member being replaced, and may be eligi- 
ble for reappointment to a full term. 

(3) Committee membership is interfaith and 
interdenominational, comprised of repre- 
sentatives from each recognized religious 
judicatory. 

(4) The Secretar>' may remove any committee 
member for misfeasance, malfeasance, or 
nonfeasance. 

(c) Ex-Officio Members. 

(1) The Chief of Program Services will ser\'e 
as the liaison between the Advisory 
Committee and the Director of Prisons. 

(2) A representati\e(s) from the Division of 
Prisons funded chaplains will attend all 
meetings of the Advisory Committee. 
The Chaplain representative(s) will be 
elected by the large body of funded cha- 
plains to serve a two-year term. 

(3) The Coordinator of Chaplaincy Serv'ices 
will attend all meetings and his office will 
be responsible for providing clerical as- 
sistance to the Committee. The coordi- 
nator will represent the Chief of Program 
Services in his absence. The Chaplaincy 
Secretary will attend all meetings to serve 
as recording secretary, and shall be re- 
sponsible for distributing minutes to all 
appropriate indi\iduals, including aU 
state-funded chaplains. 

(d) By-Laws. The Committee shaU adopt 
standard by-laws. Issues not addressed by the 
standard by-laws are reserved to the discretion 
of the Committee to be resolved in accordance 
with state law and with agency rules and regu- 
lations. 



History Note: 
14S-II; 
Eff April I. 



Statutory Authority G.S. 143B-I0; 



1990. 



1220 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



NORTH CAROLINA ADMINISTRA TIVE CODE CLASSIFICA TION SYSTEM 



The North Carolina Administrative Code ( NCAC) has four major subdivisions of rules. Two 
of these, titles and chapters, are mandatory. The major subdivision of the NCA C is the title. 
Each major department in the North Carolina executive branch of government has been as- 
signed a title number. Titles are further broken down into chapters which shall be numerical 
in order. The other two, subchapters and sections are optional subdivisions to be used by 
agencies when appropriate. 

TITLE/MAJOR DFV ISIONS OF THE NORTH CAROLINA ADMIN ISTRATrV'E CODE 



ITLE 


DEPARTMENT 


LICENSING BOARDS 


CHAPTER 


1 


Administration 


/Vrchitecture 


2 


2 


Agriculture 


Auctioneers 


4 


3 


Auditor 


Barber Examiners 


6 


4 


Economic and Community 


Certified Public Accountant Examiners 


8 




Development 


Chiropractic Examiners 


10 


5 


Correction 


General Contractors 


12 


6 


Council of State 


Cosmetic /\j1 Examiners 


14 


7 


Cultural Resources 


Dental Examiners 


16 


8 


Elections 


Electrical Contractors 


18 


9 


Governor 


Eoresters 


20 


10 


Human Resources 


Geologists 


21 


11 


Insurance 


Hearing Aid Dealers and Fitters 


22 


12 


Justice 


Landscape Architects 


26 


13 


Labor 


Landscape Contractors 


28 


14A 


Crime Control and Public Safety 


Marital & Family Therapy 


31 


15A 


Environment, Health, and Natural 


Medical Examiners 


32 




Resources 


Midwifery' Joint Committee 


33 


16 


Public Education 


Mortuary Science 


34 


17 


Revenue 


Nursing 


36 


18 


Secretary of State 


Nursing Home Administrators 


37 


19A 


Transportation 


Occupational Therapists 


38 


20 


Treasurer 


Opticians 


40 


*21 


Occupational Licensing Boards 


Optometry' 


42 


22 


Administrative Procedures 


Osteopathic Examination and 


44 


23 


Community Colleges 


Registration 




24 


Independent Agencies 


Pharmacy 


46 


25 


State Personnel 


Physical Therapy Examiners 


48 


26 


Administrative Hearings 


Plumbing and Heating Contractors 


50 






Podiatry' Examiners 


52 






Practicing Counselors 


53 






Practicing Psychologists 


54 






Professional Engineers and Land Sur\'e} 


'ors 56 






Real Estate Commission 


58 






Refrigeration Examiners 


60 






Sanitarian Examiners 


62 






Social Work 


63 






Speech and Language Pathologists and 


64 






Audiologists 








Vetcrinarv Medical Board 


66 



Note: Title 21 contains the chapters of the various occupational licensing boards. 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



1221 



CUMULA TIVE INDEX 



CUMULA TIVE INDEX 

(April 1989 - March 1990) 



{ 



1989 - 1990 



Pages 



Issue 



1 - 151 1 - April 

152 - 192 2 - April 

193 - 216 3 - May 

217 - 289 4 - May 

290 - 311 5 - June 

312 - 364 6 - June 

365 - 454 7 - July 

455 - 477 8 - July 

478 - 521 9 - August 

522 - 584 10 - August 

585 - 616 11 - September 

617 - 658 12 - September 

659 - 712 13 - October 

713 - 765 14 - October 

766 - 801 ...15 - November 

802 - 825 16 - November 

826 - 856 17 - December 

857 - 891 18 - December 

892 - 929 19 - .January 

930 - 1020 20 - .January 

1021 - 1105 21 - Fcbaiary 

1106 - 1139 22 - February 

1140 - 1162 23 - March 

1163 - 1225 24- March 



AO - Administrative Order 

AG - Attorney General's Opinions 

C - Correction 

FR - Fmal Rule 

GS - General Statute 

JO - Judicial Orders or Decision 

M - Miscellaneous 

NP - Notice of Petitions 

PR - Proposed Rule 

SO - Statements of Organization 

TR - Temporary Rule 



ADMIM.STRATION 

State Construction, 827 PR 



ADMrSISTRATrVE UKARPsGS 

General, 879 PR 
Ileanngs Division, 880 PR 
Rules Division, 880 PR 



i 



1222 



4:24 NORTH CAROLINA REGISTER March 15, 1990 



CUMULA TIVE INDEX 



ADMINISTRATIVE ORDER 

Administrative Order, 4, 1 52, 802 

AGRICULTURE 

Agronomic Services, 1 108 PR 

Cotton Warehouse, 220 PR 

Gasoline and Oil Inspection Board, 931 PR 

Markets, 217 PR, 546 PR, 1108 PR 

Pesticide Board, 292 PR 

Plant Conservation Board, 196 PR 

Plant Industry, 153 PR, 218 PR, 895 PR, 1109 PR 

State Fair, 217 PR, 1108 PR 

COMMLAITY COLLEGES 

Board of Community Colleges, 352 PR 

CORRECTION 

Departmental Rules, 815 FR 

Division of Prisons, 472 FR, 646 FR, 759 FR, 817 FR, 883 FR, 1007 FR, 1220 FR 

CRIME CONTROL AND PUBLIC SAEETY 

Victim and Justice Services, 573 PR 

CULTURAL RESOURCES 

Arcl-uves and Ilistorv, 370 PR, 455 PR, 593 PR, 720 PR 

/\rts Council, 371 PR 

U.S.S. North Carolina Battleship Commission, 548 PR 

ECONOMIC AND COMML^ITY DEVELOPMENT 

Banking Commission, 1023 PR, 1164 PR 

Cemcter>'- Commission, 198 PR, 766 PR 

Commumty Assistance, 858 PR, 1121 PR 

Credit Union, 1026 PR 

Departmental Rules, 901 PR, 1 1 14 PR 

Energy Division, 1142 PR 

Fiaance Center, 368 PR 

Hazardous Waste Manasjement Commission, 716 PR, 834 PR, 1119 PR 

Milk Commission, 455 PR, 834 PR 

Savings Institutions Division: Savings Institutions Commission, 1171 PR 

Seafood Industrial Park Authority, 806 PR 

EDUCATION 

Elementary- and Secondary Education, 253 PR, 295 PR, 511 PR, 739 PR, 843 PR 1143 PR, 
1218 PR 

ELECTIONS, STATE BOARD OE 

Departmental Rules, 661 PR 

ENV IRONMENT, HEALTH, AND NATURAL RESOURCES 

Coastal Management, 239 PR, 508 PR, 574 PR, 735 PR, 1078 PR 

Community Assistance, 134 PR 

Departmental Rules, 601 PR 

Fconomic Opportunity, 178 PR 

Environmental Management, 18 PR, 160 PR, 202 PR. 238 PR, 295 PR, 347 PR, 431 PR, 456 PR, 

700 PR, 730 PR, 866 PR, 992 PR, 1072 PR, 1217 PR 
Governor's Waste Manaccment Board, 617 C 
Land Resources, 868 PR'' 
Marine Fishcncs, 47 PR, 457 PR, 866 PR 



4:24 NORTH CAROLINA REGISTER March 15, 1990 1223 



CUMULA TIVE INDEX 



Wildlife Resources and Water Safety, 134 PR, 178 PR, 207 PR, 252 PR, 574 
PR 700 PR 738 PR 

776 PR, 809 PR, 872 PR, 903 PR, 1130 PR, 1142 PR 

FINAL DECISION LETTERS 

Voting Rights Act, 5, 193, 367, 523, 587, 618, 659, 714, 803, 857, 1022, 1106 

FESAL RULES 

List of Rules Codified, 183 FR, 274 FR, 303 FR, 445 FR, 515 FR, 609 FR, 704 FR, 788 FR, 
847 I'R, 1009 FR, 1097 I-R 

GOV ERNOR/LT. GOVERNOR 

Executive Orders, 1, 290, 312, 365, 478, 522, 585, 713, 826, 892, 930, 1021, 1140, 1163 

HUMAN RESOURCES 

AFDC, 1198 PR 

Aging, Division of, 859 PR 

Departmental Rules, 372 PR 

Fconomic Opportunity, Division of, 1070 PR 

Fmploymcnt Programs, 1062 PR 

Facility Services, l99 PR, 377 PR, 594 PR, 1029 PR, 1 188 PR 

Governor's Waste Management Board, 552 PR 

Health Services, 153 PR, 315 PR, 405 PR, 661 PR, 933 PR 

Individual and Family Support, 1063 PR 

Medical Assistance, 158 PR, 294 PR, 455 PR, 549 PR, 601 PR, 620 PR, 722 PR, 808 PR, 1068 PR 

Mental Health, Mental Retardation and Substance Abuse Ser\'ices, 17 PR, 417 PR, 685 PR, 960 PR 

Services for the Blind, 1067 PR 

Social Services, 550 PR, 773 PR 

Vocational Rehabilitation Services, 7 PR, 766 PR 

Water Treatment Facility Operators Board of Certification, 549 PR 

INDEPENDENT AGENCIES 

Housing Finance Agency, 459 PR 

INSl RANGE 

Admission Requirements, 836 PR 

Agent Services Division, 561 I'R 

Engineering and Building Codes, 775 PR, 1071 PR, 1199 PR 

Fu-e and Casualty Division, 202 PR, 479 PR, 689 PR, 986 PR, 1 123 PR 

Life, Accident and Health Division, 690 PR 

JUSTICE 

Alarm Systems Licensing Board, 991 PR 

Criminal Justice Education and Training Standards Commission, 569 PR, 860 PR 

Private Protective Services Board, 621 PR, 990 PR 

Sheriff's Fiducation and Training Standards Division, 4'M PR 

LABOR 

Apprenticesliip and Training Division, 1216 PR 

LI( ENSING BOARDS 

Arcliitecturc, 349 PR 

CPA Examiners, 458 PR, 810 PR 

Cosmetic /\rt Examiners, 1133 PR 

Electrical Contractors, 741 PR 

General Contractors, 512 PR, 844 PR 

Geologists, Board for Licensing of, 878 PR 

Landscape .Architects, 443 PR,^756 PR 

Medical Fxamincrs, Board of, 604 PR, 701 PR, 1081 PR 



1224 4:24 NORTH CAROLINA REGISTER March 15, 1990 



{ 



CUMVLA TIVE INDEX 



North Carolina Certification Board for Social Work, 179 PR 

Nursing, Board of, 296 PR, 778 PR 

Pharmacy, Board of, 1087 PR 

Physical Therapy F.xamincrs, 262 PR 

Plumbing and Heating Contractors, 757 PR 

Practicing Psychologists, 606 PR 

Real Estate Commission, 993 PR 

Sanitarian Examiners, Board of, 785 PR 

Social Work, Certification Board for, 1 144 PR 

REVENUE 

Departmental Rules, 885 FR 
Motor Fuels Tax Division, 1093 FR 
Sales and Use Tax, 353 FR 

STATE PERSON^SEL 

State Personnel Commission, 181 PR, 210 PR, 265 PR, 461 PR, 624 PR, 786 PR, 923 PR, 1 145 PR 

STATEMENTS OF ORGANIZATION 

Statements of Organization, 524 SO 

TRANSPORTATION 

Division of Motor Vehicles, 140 FR, 607 FR, 648 FR 



4:24 NORTH CAROLINA REGISTER March 15, 1990 1225 



i 



NORTH CAROLINA ADMINISTRATIVE CODE 

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